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2) There is a 7% coupon bond (semiannual) maturing in 2 years. A face value is...

2) There is a 7% coupon bond (semiannual) maturing in 2 years. A face value is $1,000. Then the price of the bond is $ . (Note:Round to the nearest hundredth.) 1) What are the 1.5 year and 2 year forward rates? (Note: Round to the nearest hundredth.)

Maturity (Year)

Spot Rate

Forward Rate

0.5

3.01 %

3.01%

1

3.21 %

3.41%

1.5

3.53 %

%

2

3.87 %

%

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­SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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