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Problem 6 (3 points): You noticed that the price of a 7-year 6% coupon bond is $106 and the price of a 10-year 8% coupon

Problem 6 (3 points): You noticed that the price of a 7-year 6% coupon bond is $106 and the price of a 10-year 8% coupon bond is $119. All bonds have $100 face values. a) (1.5 points) Find 7-year forward interest rate. Keep at least 6 decimal digits for all calculations!!!

b) (1.5 points) Find the price of a 7-year 9% coupon bond with a $100 face value.

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