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Year 1-Year Forward Rate 1 5 % 2 5.5 % 3 6.0 % 4 6.5 % 5 7.0 % Calculate the price at the beginning
| Year | 1-Year Forward Rate | |
| 1 | 5 | % |
| 2 | 5.5 | % |
| 3 | 6.0 | % |
| 4 | 6.5 | % |
| 5 | 7.0 | % |
Calculate the price at the beginning of year 1 of an 8% annual coupon bond with face value $1,000 and 5 years to maturity.
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Financial Mathematics
Authors: Cacildo Marques
1st Edition
8741574710, 979-8741574713
