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how can you calculate the forward (delivery) price ? given: t bill t = 1.5 years. (3 periods) fv = $100 coupon rate= 4% (semi

how can you calculate the forward (delivery) price ?

given:

t bill t = 1.5 years. (3 periods)

fv = $100

coupon rate= 4% (semi annual) = 20

verify the delivery price will be $98.20 on the first period.

we have 2 given forward rates:

forward rate = 3.01% (for 1 year)

forward rate = 2.76% (for 1.5 year)

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