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EXERCISE 4 Consider a Treasury bond with a face of $10,000, a semi-annual coupon of c(2) = 8%, and several years to maturity. Currently, this

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EXERCISE 4 Consider a Treasury bond with a face of $10,000, a semi-annual coupon of c(2) = 8%, and several years to maturity. Currently, this bond is selling for $9,620, and the previous coupon has just been paid. What is the forward price for delivery of this bond in 1 year? Assume that the rate of interest compounded semi-annually is constant at 9%

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