Suppose today is January $1,2020.$ The current price of a share of XYZ stock is $$100.$ The stock will

not pay dividends over the next five years. You also collect information on five zero$-$coupon bonds:

Bond A$,$ B$,$ C$,$ D$,$ and E$.$ All bonds have a face value of $$100.$ The price and maturity of these five

bonds as of Jan. $1,2020,$ is summarized in Table $2$ below:

$1$

Table $2$: Bond Prices on Jan. $1,2020$

Bonds Maturity Date Price

A Jan. $1,2021$ $$98$

B Jan. $1,2022$ $$97$

C Jan. $1,2023$ $$96$

D Jan. $1,2024$ $$95$

E Jan. $1,2025$ $$94$

An investor has just taken a long position in a $5-$year forward contract on the stock $($i$.$e$.,$ expiration

date is January $1,2025).$

$($a$)$ What is the forward price and the initial value $($or cost$)$ of the forward contract?