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You are planning on signing a 6-month forward contract where the underlying asset is Walmart Inc bond with 5.25% annual coupon and 15 years to
You are planning on signing a 6-month forward contract where the underlying asset is Walmart Inc bond with 5.25% annual coupon and 15 years to maturity. The yield on the bond is 1.766%. Bond makes semi-annual coupon payments and has a face value of $1,000.
If the risk-free rate of interest is 1.0%, what should be the delivery price of the forward contract?
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