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Use the following information to solve questions 10-11. The table below contains information on semi-annually compounded zero-coupon bonds with a value of $1. Years to
Use the following information to solve questions 10-11. The table below contains information on semi-annually compounded zero-coupon bonds with a value of $1. Years to Maturity 1 2 3 4 5 mi Zero-Coupon Yield Zero-Coupon Prices 2.50% $0.9755 3.25% $0.9376 4.15% $0.8841 4.85% 6.60% 10. (1 point) Assume the 1-, 2-, 3-, 4-, and 5-year gold forward prices are $1,710, $1,780, $1,885, $1,930, and $2,000, respectively. A. What is the 4-year gold swap price? B. Is the gold forward market in contango or backwardation? Why? 11. (1 point) Assume the 1-, 2-, 3-, 4-, and 5-year gold forward prices are $1,710, $1,780, $1,885, $1,930, and $2,000, respectively. A. What is the 5-year gold swap price? Use the following information to solve questions 10-11. The table below contains information on semi-annually compounded zero-coupon bonds with a value of $1. Years to Maturity 1 2 3 4 5 mi Zero-Coupon Yield Zero-Coupon Prices 2.50% $0.9755 3.25% $0.9376 4.15% $0.8841 4.85% 6.60% 10. (1 point) Assume the 1-, 2-, 3-, 4-, and 5-year gold forward prices are $1,710, $1,780, $1,885, $1,930, and $2,000, respectively. A. What is the 4-year gold swap price? B. Is the gold forward market in contango or backwardation? Why? 11. (1 point) Assume the 1-, 2-, 3-, 4-, and 5-year gold forward prices are $1,710, $1,780, $1,885, $1,930, and $2,000, respectively. A. What is the 5-year gold swap price
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