Calculate the 2nd year forward rate of a bond security

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Reference no: EM132811861

1. What is the price of a 10 year, semi-annual bond with a coupon of 7.5% if market rates are 6%? What is a price of bond if the coupon rate is zero (i.e., zero-coupon bond)?

2. Calculate the 2nd year forward rate of a bond security if a one-year bond security YTM is 7% and a two-year bond security YTM is 9%.

Reference no: EM132811861

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