Distinguish between variability of returns and volatility


1. Distinguish between variability of returns and volatility of returns.

2. You enter into a forward contract to buy a 10 year, zero coupon bond that will be issued in one year. The face value of the bond is $1,000, and the 1-year and 11-year rates are 5 and 6 percent, respectively. What is the forward price of your contract?

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Financial Management: Distinguish between variability of returns and volatility
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