You are given the following information: The price of a one-year zero coupon bond with par value of $100 is $96.35. • The second year 1-year forward rate is 7%. The second year 2-year forward is 9%....

You are given the following information:<br>The price of a one-year zero coupon bond with par value of $100 is $96.35.<br>• The second year 1-year forward rate is 7%.<br>The second year 2-year forward is 9%.<br>Calculate the price of a 3-year bond with par value of $100 and 5% annual coupons.<br>(A) $93.0<br>(B) $94.5<br>(C) $96.5<br>(D) $97.5<br>(E) $99.0<br>

Extracted text: You are given the following information: The price of a one-year zero coupon bond with par value of $100 is $96.35. • The second year 1-year forward rate is 7%. The second year 2-year forward is 9%. Calculate the price of a 3-year bond with par value of $100 and 5% annual coupons. (A) $93.0 (B) $94.5 (C) $96.5 (D) $97.5 (E) $99.0

Jun 07, 2022

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You are given the following information: The price of a one-year zero coupon bond with par value of $100 is $96.35. • The second year 1-year forward rate is 7%. The second year 2-year forward is 9%....

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