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Find 7-year forward interest rate

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Reference no: EM133112077

You noticed that the price of a 7-year 6% coupon bond is $106 and the price of a 10-year 8% coupon bond is $119. All bonds have $100 face values.

a) Find 7-year forward interest rate. Keep at least 6 decimal digits for all calculations!!!

b) Find the price of a 7-year 9% coupon bond with a $100 face value.

Reference no: EM133112077

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