3) Today is t=0.5. Compute the present value of the forward contract to purchase a 1.5-year zero coupon bond, a year from t=0. We know that today's forward price is 94. At t = 0 and t=0.5, we have the...

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3) Today is t=0.5. Compute the present value of the forward contract to purchase a 1.5-year<br>zero coupon bond, a year from t=0. We know that today's forward price is 94. At t = 0<br>and t=0.5, we have the following discounts:<br>Z(0,T) | Z(0.5,T)<br>0.5<br>0.968<br>1<br>1.0<br>0.936<br>0.970<br>1.5<br>0.904<br>0.952<br>2.0<br>0.873<br>0.921<br>2.5<br>0.8445<br>0.892<br>3.0<br>0.8175<br>0.854<br>3.5<br>0.7924<br>0.821<br>4.0<br>0.7691<br>0.798<br>

Extracted text: 3) Today is t=0.5. Compute the present value of the forward contract to purchase a 1.5-year zero coupon bond, a year from t=0. We know that today's forward price is 94. At t = 0 and t=0.5, we have the following discounts: Z(0,T) | Z(0.5,T) 0.5 0.968 1 1.0 0.936 0.970 1.5 0.904 0.952 2.0 0.873 0.921 2.5 0.8445 0.892 3.0 0.8175 0.854 3.5 0.7924 0.821 4.0 0.7691 0.798

Jun 04, 2022

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3) Today is t=0.5. Compute the present value of the forward contract to purchase a 1.5-year zero coupon bond, a year from t=0. We know that today's forward price is 94. At t = 0 and t=0.5, we have the...

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