b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (years) 1 2 2 3 4 4 Price of Bond $ 910.90 907.97 828.12 768.49 Maturity (Years) Price of Bond $ 907.97 $ 828.12 $ 768.49 Forward Rate % % %

b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (years) 1 2 2 3 4 4 Price of Bond $ 910.90 907.97 828.12 768.49 Maturity (Years) Price of Bond $ 907.97 $ 828.12 $ 768.49 Forward Rate % % %

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 11PROB

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A 30. Subject:- finance
round to nearest integer