Question: 3. Going back to the data given in Exercise 2, calculate the following: (a) The bid-ask on a forward swap that starts in two years

3. Going back to the data given in Exercise 2, calculate the following:

(a) The bid-ask on a forward swap that starts in two years with maturity in three years. The swap is against 12-month Libor.

(b) The forward price of a coupon bond that will be delivered at time 2. The bond pays coupon 7% and matures in two years.

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