Based on the table below, the value per 100 of par value of a three-year, 3.5% coupon bond, with interest payments paid annually, is closest to: Forward rate 1 year forward rate at time zero (1f0) 1 year forward rate 1 year from now (1f1) Value 0.80% 1.12% 3.94% 1 year forward rate 2 year from now (1f2) 1 year forward rate 3 year from now (1f3) 1 year forward rate 4 year from now (1f4) 3.28% 3.14% All rates are annual rates stated for a periodicity of one (effective annual rates). 105.36 O 105.82 104.60
Based on the table below, the value per 100 of par value of a three-year, 3.5% coupon bond, with interest payments paid annually, is closest to: Forward rate 1 year forward rate at time zero (1f0) 1 year forward rate 1 year from now (1f1) Value 0.80% 1.12% 3.94% 1 year forward rate 2 year from now (1f2) 1 year forward rate 3 year from now (1f3) 1 year forward rate 4 year from now (1f4) 3.28% 3.14% All rates are annual rates stated for a periodicity of one (effective annual rates). 105.36 O 105.82 104.60
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Based on the table below, the value per 100 of par value of a three-year, 3.5% coupon bond, with interest
payments paid annually, is closest to:
Forward rate
1 year forward rate at time zero (1f0)
1 year forward rate 1 year from now (1f1)
Value
0.80%
1.12%
3.94%
1 year forward rate 2 year from now (1f2)
1 year forward rate 3 year from now (1f3)
1 year forward rate 4 year from now (1f4)
3.28%
3.14%
All rates are annual rates stated for a periodicity of one (effective annual rates).
105.36
O 105.82
104.60](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F26e3ca20-a34b-457f-a477-b646328e910f%2Fc5d45d40-6a0d-495d-b91c-8c02546d7bde%2Fv8f9_processed.png&w=3840&q=75)
Transcribed Image Text:Based on the table below, the value per 100 of par value of a three-year, 3.5% coupon bond, with interest
payments paid annually, is closest to:
Forward rate
1 year forward rate at time zero (1f0)
1 year forward rate 1 year from now (1f1)
Value
0.80%
1.12%
3.94%
1 year forward rate 2 year from now (1f2)
1 year forward rate 3 year from now (1f3)
1 year forward rate 4 year from now (1f4)
3.28%
3.14%
All rates are annual rates stated for a periodicity of one (effective annual rates).
105.36
O 105.82
104.60
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