The forward price for a one-year zero-coupon bond beginning


1. The one-year spot rate z1 = 5% and the forward price for a one-year zero-coupon bond beginning in one year is 0.9346. Find the spot price (zero price) of a two-year zero-coupon bond.

2. Suppose you invest $15,000 by purchasing 200 shares of abbot labs at $ 40 per share, 200 shares of Lowe's at $20 per share, and 100 shares of ball corporation at $30 per share. the weight of ball corporation in your portfolio is?

3. A 3.50 percent TIPS has an original reference CPI of 171.8. If the current CPI is 207.1, what is the current interest payment and par value of the TIPS? (Round your answer to 2 decimal places.) A. $1,000, $5.47, respectively B. $1,205.47, $5.47, respectively C. $1,000, $21.10, respectively D. $1,205.47, $21.10, respectively

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Financial Management: The forward price for a one-year zero-coupon bond beginning
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