Part A

Find the price of the bond forward contract if: 1. the bond pays semi-annual coupon payments of $50; 2. the first coupon occurs 181 days after issue, the secont 365 days, the third 547 days, and the fourth 730 days; 3. the investor wants to sell the bond at 731st day; 4. today is 150 days into the life of the bond;

5. the price of the bond today is $1010.25; 6. the yield to maturity is 8% per annum

If needed, round your final answer to 2 decimal places.

Part B

Suppose you short (sell) the forward contract. Find the value of the forward contract at initiation if the yield to maturity is 8% per annum.

Explain your answer. If needed, round your final answer to 2 decimal places.

Part (c): Suppose you short (sell) the forward contract. Find the value of the forward contract at t=515 days if the new price of the bond is $1025.375 and yield to maturity is 7% per annum. If needed, round your final answer to 2 decimal places.