What is the implied one year forward rate

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1. Suppose a bond has 10 years to maturity and a coupon rate of 6 percent. The bond's yield to maturity is 8 percent. What's the price? Assume semi-annual payment.

2. If an investor's required return is 12 percent, the value of a 10-year maturity zero coupon bond with a maturity value of $1,000 is closest to_______. Assume semi-annual compounding.

3. The annual coupon rate on a 1-year treasury bond is 5.5%. The coupon on a 2-year treasury bond is 5.8%. What is the implied 1 year forward rate?

Reference no: EM131920751

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