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What is the forward price of your contract

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Reference no: EM131934356

1. You enter into a forward contract to buy a 10 year, zero coupon bond that will be issued in one year. The face value of the bond is $1,000, and the 1-year and 11-year rates are 5 and 6 percent, respectively. What is the forward price of your contract?

2. Describe how you would go about selecting a discount rate for valuing a limousine company. Mention and describe specific sources (example, MERGENT ONLINE, or IBIS WORLD RISK REPORT, or others we have studied.).

Reference no: EM131934356

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