The indirect quote for the six-month eurodollar forward


1. A 10-year bond with a face value of $1000 earns interest at 9.7% convertible semiannually. If the bond sells for $1057.07 to yield an investor 7.5% convertible semiannually, what is the redemption value?

C = $

2. If the current exchange rate is €1.0271/$, and the six-month money market rate in the Euro zone is 0.31% while the equivalent money market rate in the U.S. is 0.84%, the indirect quote for the six-month Euro/dollar forward rate should be:

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Financial Management: The indirect quote for the six-month eurodollar forward
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