Suppose that discount bond prices are as follows: 2 3 4 P. 0.9525 0.899 0.838 0.760 0.05 0.065 0.054 0.070 A customer would like to have a forward contract to borrow $20M two years from now for one...

Suppose that discount bond prices are as follows:<br>2<br>3<br>4<br>P.<br>0.9525<br>0.899<br>0.838<br>0.760<br>0.05<br>0.065<br>0.054<br>0.070<br>A customer would like to have a forward contract to borrow $20M two years from now for one vear.<br>Can you (a bank) quote a rate for this forwardloan?<br>Question 15<br>Your investment account earned 10.8% last year, inflation was 6.0% for last year. What was the real<br>return on your account last year?<br>

Extracted text: Suppose that discount bond prices are as follows: 2 3 4 P. 0.9525 0.899 0.838 0.760 0.05 0.065 0.054 0.070 A customer would like to have a forward contract to borrow $20M two years from now for one vear. Can you (a bank) quote a rate for this forwardloan? Question 15 Your investment account earned 10.8% last year, inflation was 6.0% for last year. What was the real return on your account last year?

Jun 11, 2022

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Suppose that discount bond prices are as follows: 2 3 4 P. 0.9525 0.899 0.838 0.760 0.05 0.065 0.054 0.070 A customer would like to have a forward contract to borrow $20M two years from now for one...

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