Consider a six-month forward contract to buy a zero-coupon bond that will mature one year...

50.1K

Verified Solution

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!
Become a Member

Other questions asked by students