Solve

(Marks 5+5 ) a) Calculate the price of a 250-day forward contract on a 7\% U.S. Treasury bond with a spot price of $1,050 (including acerued interest) that has just paid a coupon and will make another coupon payment in 182 days. The annual risk-free rate is 6%. After 100 days, the value of the bond is $1,090. Calculate the vialue of the forward contraet on the bond to the long position, assuming the risk-free rate is 6.0%