(Answered) Determine algebraically the implied forward rate

Finance

Problem: Bond X is a one-year zero with face value of 1,000 trading at $945 and Bond Y is a two-year zero with a face value of 1,000 trading at $870.

Required:

Question 1: Determine algebraically the implied forward rate f11.

Question 2: Explain how the forward rate can be attained by a locking-in strategy.

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