Exercise $3($choose the closest to what you find$)$

A bond has a face value of $$1000$ a coupon rate of $4\mathrm{.}5\%$ and matures in $11$ years. The spot price

of the bond is $$973\mathrm{.}77.$ The bond pays semiannual coupons and the next coupon is in

$4$ months. Calculate the forward price of a forward contract on the bond that matures in

$18$ months. The risk$-$free rate is $5\mathrm{.}17\%.(10$ pts$)$

$($A$)$ $$1770\mathrm{.}57$

$($B$)$ $$1217\mathrm{.}58$

$[$C$)$ $$1566\mathrm{.}57$

$($D$)$ $$979\mathrm{.}53$