$$\begin{array} { l | l }
\hline \text { Year } & \text { 1-Year Forward Rate } \
\hline 1 & 4.6 \% \
\hline 2 & 4.9 \% \
\hline 3 & 5.2 \% \
\hline 4 & 5.5 \% \
\hline 5 & 5.8 \% \
\hline
\end{array}$$
-What should the purchase price of a 2-year zero coupon bond be if it is purchased today and has face value of $1,000?
A)$966.87
B)$911.37
C)$950.21
D)$956.02
E)$945.51

Question

$$\begin{array} { l | l } 
\hline \text { Year } & \text { 1-Year Forward Rate } \
\hline 1 & 4.6 \% \
\hline 2 & 4.9 \% \
\hline 3 & 5.2 \% \
\hline 4 & 5.5 \% \
\hline 5 & 5.8 \% \
\hline
\end{array}$$
-What should the purchase price of a 2-year zero coupon bond be if it is purchased today and has face value of $1,000?
A)$966.87
B)$911.37
C)$950.21
D)$956.02
E)$945.51

Quizplus · Accepted Answer

The Answer of $$\begin{array} { l | l } 
\hline \text { Year } & \text { 1-Year Forward Rate } \
\hline 1 & 4.6 \% \
\hline 2 & 4.9 \% \
\hline 3 & 5.2 \% \
\hline 4 & 5.5 \% \
\hline 5 & 5.8 \% \
\hline
\end{array}$$
-What should the purchase price of a 2-year zero coupon bond be if it is purchased today and has face value of $1,000?
A)$966.87
B)$911.37
C)$950.21
D)$956.02
E)$945.51

-What Should the Purchase Price of a 2-Year Zero Coupon