You look up a 15-month bond forward contract and find the following: the current price of the bond is $1200, and the forward price is $1190. It will pay a coupon of $50 in 4 months and 10 months. The annualized, continuously compounded risk free rate is 0.5% for 4 months, 1% for 10 months, and 2% for 15 months. Find an arbitrage trade, and show the profit from your trade.

Verified that forward price less than current bond price. In class, professor said something about using continuous compounding. Have to use formula with exponent.