Question

关于forward rate 和 bond price

Answer 1

f0=r1=5%

(1+r2)^2=(1+r1)(1+f1)

(1+r3)^3=(1+r2)^2 (1+f2)

P(1+r3)^3 = 1000

P=1000/(1.05*1.07*1.09) =816.58