The following information relates to a forward contract written on a bond: Bond price = $95 Maturity = 1 year Coupon 1, paid in 6 months = $3; Coupon 2, paid immediately prior to maturity of forward =...

The following information relates to a forward contract written on a bond:<br>Bond price = $95<br>Maturity = 1 year<br>Coupon 1, paid in 6 months = $3; Coupon 2, paid immediately prior to maturity of forward = $2<br>Riskless rate of interest = 5%<br>What is the forward price?<br>A) $94.43<br>B $85.77<br>c) $94.79<br>D) $93.79<br>

Extracted text: The following information relates to a forward contract written on a bond: Bond price = $95 Maturity = 1 year Coupon 1, paid in 6 months = $3; Coupon 2, paid immediately prior to maturity of forward = $2 Riskless rate of interest = 5% What is the forward price? A) $94.43 B $85.77 c) $94.79 D) $93.79

Jun 11, 2022

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The following information relates to a forward contract written on a bond: Bond price = $95 Maturity = 1 year Coupon 1, paid in 6 months = $3; Coupon 2, paid immediately prior to maturity of forward =...

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