Information on the yield curve

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This information on the yield curve applies to all questions below: interest rates for different maturities (1yr, 2, 3, 4, 5) are (1.0%, 2.8, 4.5, 4.7, 4.0) respectively.

Three years from now you will sell 10 ounces of gold and immediately deposit the proceeds for two years. The spot price of gold is $500 per ounce and it costs 10% to store gold. You decide to hedge all risk. How much will you have at t=5?

Reference no: EM133121060

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