) Give all answers to the nearest cent. On May 7th, 2013, a 4-year bond is issued with face value 5,000 that has coupon rate of 2% p.a., paid annually. Assuming a flat yield curve of 1.2%p.a. for all maturities, find the cash value of the bond on that date. Find the forward price in a long forward contract, with maturity three years later, i.e. a contract to buy the bond on May 7th, 2016. Find the value of this forward contract two years later, on May 7th, 2015. Assume on that date the yield curve is flat at 0.8%p.a. On that same day, the investor wants to unwind the contract, so she enters into an offsetting position by taking a short position in a new forward contract on offer to sell the bond on May 7th, 2016. Find the forward price of the new contract. Find the combined value of her position in both contracts on the maturity date of the contracts, May 7th, 2016. (Useful formula: the value of a forward contract during its lifetime is B(t) I(t) F,P(t, T))