Mr. Brown enters into a forward contract to sell a bond in three months' time at AUD 100. After one month, the bond price is AUD 101.50. Suppose the term structure of interest rates is at 2% for all maturities.

(i) Assuming no coupons are due on the bond over the next two months, what is the new forward price on the bond?

(ii) What is the marked-to-market value (fair value) of the investor's short position?

(iii) If the bond will pay a coupon of $2 in one month's time, what is the new forward price on the bond?