Find the two one-period forward rates

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1. Given the yield on a 3 year zero-coupon bond is 7.2% and forward rates of 6.1% in year 1 and 6.9% in year 2, what must be the forward rate in year 3?

2. Consider two annual coupon bonds, each with two years to maturity. Bond A has a 7% coupon and a price of $1,000.62. Bond B has a 10% coupon and sells for $1,055.12. Find the two one-period forward rates that must hold for these bonds.

For the first question, please provide the formular. the second question, I know how to get d1 and d2, but I do not know how to get r1 and r2

Reference no: EM131468706

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