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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 6-month forward contract on a 1-year coupon bond with a 8% quarterly coupon. Assume a face value of $1 million. Using the discount factors for August 15,2000 in Table 5.9(page 186 of text) find the forward price. Assume delivery would occur just after the coupon at t=0.5 has been made. Round you answer to the closest dollar. Do not include $ sign or any commas, just the number. Assume that 3-months have gone by (i.e. it is now November 15,2000). What is the value of the original forward contract now? See table 5.9 for the Nov. 15th discount factors. Round your answer to the nearest dollar.
Table 5.9
Aug 15,20000 Nov 15,20000
Maturity Z(0, T )
0.250.98440.250.9848
0.500.96900.500.9692
0.750.95310.750.9545
1.000.93861.000.9402
Please show all calculations

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