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Forward rate of interest for period

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Reference no: EM131044603

The cash futures price of a 3 month zero coupon bond with a face value of $100 for delivery in 11.62 months from now is 95.19 dollars. Suppose that the current spot interest rate for a term of  14.62 months is 20.25% per annum. Assume continuous compounding to answer the following:

1. The forward rate of interest for period 11.62 months for 11.62+3 months

2. The spot rate of interest for period 0 to 11.62 months

3. The current fair value of a 11.62 -month zero coupon bond with $100 face.

Reference no: EM131044603

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