# Suppose that the prices of zero-coupon bonds with various maturities

## Question: Suppose that the prices of zero-coupon bonds with…

Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000.

Maturity(Years) | Price |

1 | $968.16 |

2 | 878.39 |

3 | 812.92 |

4 | 749.00 |

5 | 675.46 |

- how could you construct a 1-year forward loan beginning in year 3?
**(Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the “$” & “%” signs in your response.)**

Face value | $ |

Rate of synthetic loan | % |

- how could you construct a 1-year forward loan beginning in year 4?
**(Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the “$” & “%” sings in your response.)**

Face Value | $ |

Rate of synthetic loan | % |