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Use the following information to answer questions 1 6 - 1 7 Current 1 - year spot rate = 5 . 5 % the 1
Use the following information to answer questions
Current year spot rate
the year forward rate one year from now: f
the year forward rate two years from now: f
the year forward rate three years from now: f
The value of a year, annualpay, $ par value bond would be closest to:
A $
B $
C $
D $
Using the annual compounding, the value of a year, zerocoupon, $ par value bond would be :
A $
B $
C $
D $ B
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