Need additional help. Please read the following answered problems then
answer the questions "A thru D":

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 spot interest rates are 3 percent per annum
and 8 percent per annum, respectively. Both of these interest rates
are expressed as effective annual yields (EAYs).
a. What is the forward price of your contract?
	Forward Price = S0(1+ r)
			S0  = the current price of the underlying asset 
	r = the interest rate between the initiation of the forward contract
	and the delivery date
	Current $	$428.88 [= $1,000 / (1.08)11 ]
	So?Forward price at 3% is
			$428.88(1.03) = $441.75
b. Suppose both the 1-year and 11-year spot rates unexpectedly shift
downward by 2 percent. What is the price of a forward contract
otherwise identical to yours?
	IF shifted down by 2%, the interest rate when pricing the bond would
be 6% per annum, and the interest rate to use in the forward pricing
equation is 1%. These changes results in an increase in the current
bond price:
		$526.79 [= $1,000 / (1.06)11]
C. What is the price of a forward contract otherwise identical to yours?

	The new forward price of the contract is:
	Forward Price = $526.79(1.01) = $532.06

"A thru D"

a.	What financial concept or principle is the problem asking you to solve? 

b.	In the context of the problem scenario, what are some business
decisions that a manager would be able to make after solving the
problem?


c.	Is there any additional information missing from the problem that
would enhance the decision-making process?

d.	Without showing mathematical calculations, explain in writing how
you would solve the problem.