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What is the value of the forward today? The spot price is $1000. There is a $50 coupon which is paid in 6 months and

What is the value of the forward today? The spot price is $1000. There is a $50 coupon which is paid in 6 months and another $50 coupon which is paid in 12 months. Assume 8% annual risk-free rate for all rate. The forward matures in one year.

  • A. $980.20
  • B. $939.80
  • C. $940.81
  • D. $981.25

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