You plan to buy a 2 year zero coupon bond one year from today.If the risk free rate is 5.6% and the forward price for the bond is $843.25,what should be the current price of a three year zero-coupon bond?
A) $943.25
B) $893.23
C) $996.07
D) $798.53
Correct Answer:
Verified
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Q42: NARRBEGIN: Exhibit 17-1
Exhibit 23-1
S&P 500 Index; $250
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