Question 13 4 points 2 Forward price and value of a position. Consider a 4-month forward contract on a zero-coupon bond with a face value of $1,000 that is currently quoted at $645, and assume a discrete risk-free annual interest rate of 3%. a. Determine the price of the forward contract under the no-arbitrage principle. $ Number Round your answer to the nearest cent b. Suppose that after 2 month(s) the spot price on the zero-coupon bond is $710, and the risk-free rate is still 3%. Calculate the value of a long position in the forward contract. $ Number Round your answer to the nearest cent

orward price and value of a position. onsider a 4-month forward contract on a zero-coupon bond with a face value of $1,000 that is currently uoted at $645, and assume a discrete risk-free annual interest rate of 3%. a. Determine the price of the forward contract under the no-arbitrage principle. s Round your answer to the nearest cent b. Suppose that after 2 month(s) the spot price on the zero-coupon bond is $710, and the risk-free rate is still 3%. Calculate the value of a long position in the forward contract. $ Round your answer to the nearest cent