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Consider a long position in a 6 - month forward contract on a 1 - year coupon bond with a 8 % quarterly coupon. Assume
Consider a long position in a month forward contract on a year coupon bond with a quarterly coupon. Assume a face value of $ million. Using the discount factors for August in Table page of text find the forward price. Assume delivery would occur just after the coupon at t has been made. Round you answer to the closest dollar. Do not include $ sign or any commas, just the number. Assume that months have gone by ie it is now November What is the value of the original forward contract now? See table for the Nov. th discount factors. Round your answer to the nearest dollar.
Table
Aug Nov
Maturity Z T
Please show all calculations
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