**Questions 1-6**should be answered by building an*n*=10-period binomial model for the short-rate,ri,j?. The lattice parameters are:r0,0 = 5%,u= 1.1*, *d = 0.9 andq = 1 – q = 1/2.**1.Question 1**

Compute the price of a zero-coupon bond (ZCB) that matures at time*t*=10and that has face value 100.**Submission Guideline:Give your answer rounded to 2 decimal places. For example, if you compute the answer to be 73.2367%, submit 73.24.****2.Question 2**

Compute the price of a forward contract on the same ZCB of the previous question where the forward contract matures at time*t*=4.**Submission Guideline:Give your answer rounded to 2 decimal places. For example, if you compute the answer to be 73.2367%, submit 73.24.****3.Question 3**

Compute the initial price of a futures contract on the same ZCB of the previous two questions. The futures contract has an expiration of*t*=4.**Submission Guideline:Give your answer rounded to 2 decimal places. For example, if you compute the answer to be 73.2367%, submit 73.24.**

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