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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 oneyear Treasury bond in six months. The bond has a face value of $ Use the spot interest rates listed here to answer the following questions
Time EAR
months
months
months
months
a What is the forward price of this contract? Do not round intermediate calculations and round your answer to decimal places, eg
b Suppose shortly after you purchased the forward contract all rates increased by basis points For example, the sixmonth rate increased from percent to 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 decimal places, eg
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