Problem 4 (3 points): Assume that two zero-coupon bonds maturing in 210 days and in...
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Problem 4 (3 points): Assume that two zero-coupon bonds maturing in 210 days and in 150 days cost $0.9367 and $0.9417 (assume that face value of each bond is $1, i.e., all pricing is done as a percentage of the face value). You want to use this information to find a forward price with delivery date t on a zero-coupon bond with n days to maturity. a) (2 points) What must n and t be (both measured in the number of days) so that you would be able to find the desired forward price based on the available information. b) (1 point) Find the forward price
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