Question

Zero-coupon bonds maturing in 1, 2, and 3 years have prices of 0.9345, 0.8766, and 0.8212, respectively. What is the forward price for a 1-year bond purchased in year 2?
A) 0.6866
B) 0.7234
C) 0.8787
D) 0.9368

Answer

This answer is hidden. It contains 1 characters.