Consider a six-month forward contract to buy a zero-coupon bond that will mature one year...
50.1K
Verified Solution
Link Copied!
Question
Finance
Consider a six-month forward contract to buy a zero-coupon bond that will mature one year from today. The current price of the bond is Rs 1000. Assume that the rate of interest (continuously compounded ) is 8% per annum . Find the forward price?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!