Use the table below. Suppose you are planning on buying a special bond that will pay monthly coupons for a period of 6 months. That bond has a face value of $100.00 and a coupon rate of 12%. This means each coupon will be 2% of face value (every month). That special bond will be issued only in 5 months from now. The first coupon would occur 6 months from now, there would be 6 coupons, and you would receive the face value in 12 months from now. The issuing price for the bond will depend on the current level of the interest rates in 5 months from now. So you are facing interest rate risk. Your finance professor proposes to write a forward contract for you. The contract specifies that your finance professor will sell the bond at a fixed price, while you will buy that bond at that fixed price. Using the table below, which has the zero rates in continuous time, find the fair value of bond that should be put on the forward contract.

Use what you learn about discounting cash-flows, zero-rates, forward rates, and valuing futures to value that bond.

Show your work for full credits and be detailed.

Month	Zero Rates (%) Continuous time
1	2.00%
2	2.50%
3	2.90%
4	3.20%
5	3.45%
6	3.65%
7	3.80%
8	3.90%
9	3.95%
10	3.95%
11	3.90%
12	3.80%