This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Term to Maturity Price 1 9328.36 2 8685.62 3 8072.14 4 7488.07 a) A loan of $5000 is to be repaid by two equal payments $X at times 2 and 4. Use the term structure of interest rates de&ned by the zero coupon bonds to determine X. b) Calculate the oneyear deferred twoyear forward rate. c) Calculate the twoyear deferred oneyear forward rate. d) A loan made at time 0 may be repaid by either a single payment of $3000 at time 3 or a single payment of $Y at time 4. Calculate Y. 2 4...
View
Full Document
 Spring '09
 Chisholm
 Macaulay, Zerocoupon bond, coupon bonds, approximate relative change

Click to edit the document details