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This morning you agreed to buy a one - year Treasury bond in six months. The bond has a face value of $ 1 ,

This morning you agreed to buy a one-year Treasury bond in six months. The bond has a face value of $1,000. Use the spot interest rates listed here to answer the following questions
Time EAR
6 months
3.77%
12 months
4.21
18 months
4.89
24 months
5.61
a. What is the forward price of this contract? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
b. Suppose shortly after you purchased the forward contract all rates increased by 20 basis points For example, the six-month rate increased from 3.77 percent to 3.97 percent. What is the price of a forward contract otherwise identical to yours given these changes? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)

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