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Given Zero-Coupon Bond Yields Are 5

Question 14

Multiple Choice

Given zero-coupon bond yields are 5.2%, 5.5%, and 5.8% in years 1, 2, and 3, respectively, calculate the prepaid swap price for corn. Assume corn forward prices for the proceeding 3 years are $2.10, $2.20, and $2.35, respectively.


A) $5.96
B) $6.04
C) $6.12
D) $6.20

Correct Answer:

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