AuthorTopic: Forward rate question
@2014-09-03 16:17:44

Could you please help me solve the following question :

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

Answer : 6,08 % and 7.92 %

CFA Discussion Topic: Forward rate question

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