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 expressed as
effective annual yields (EAY's).
a. What is the forward price of your contract?
b. Suppose both the spot rates unexpectadly shif downward by 1%. What
is the price of a forward contract otherwise identical to yours?

Note: You may answer the obove questions of the below questions. Which
ever is easier.

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 stating applicable formulas.