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BBC has just issued a new annual coupon bond that has 5 years to maturity, a coupon rate of 5% and trades at par at

BBC has just issued a new annual coupon bond that has 5 years to maturity, a coupon rate of 5% and trades at par at a price of $1000. You may assume that the yield-curve is flat.

Identify if the 6 month forward-rate curve you computed in c is in a state of backwardation, contango or is flat.

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