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A Treasury bond has a face value of $ 1 2 , 0 0 0 , a coupon of 4 % , and several years

A Treasury bond has a face value of $12,000, a coupon of 4%, and several years to maturity. Currently this bond sells for $9,660, and the previous coupon has just been paid. What is the forward price for delivery of this bond in 1 year?
b)Assume that the interest rates for 1 year out are flat at 9% semiannually compounded. The T Bond pays coupons semi-annually. If the forward is trading in the market for $9,400 what will you do?
If an at-the-money one-year call option on the forward is available how much should it sell for?
If this is the only available option, can you use it to create a floor for the one-year forward price?

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