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1.8 A coupon bond has a spot price of $860. The bond will pay coupons of $40 in 6 months and in one year. The

image text in transcribed 1.8 A coupon bond has a spot price of $860. The bond will pay coupons of $40 in 6 months and in one year. The risk-free rates are 8% (per year continuously compounded) for 6 month maturity and 10% for one year maturity. Find the delivery price for a one year forward contract on the bond, with delivery immediately after the coupon payment

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