(1 point) (A bond forward) A certain 10-year bond is currently selling for $ 920 A friend of yours owns a forward contract on this bond that has a delivery date in 1 year and a delivery price of $ 940. The bond pays coupons of $ 80 every 6 months, with one due 6 months from now and another just before maturity of the forward. The current interest rates for 6 months and 1 year (compounded semiannually) are 7% and 8%, respectively (annual rates compounded every 6 months). What is the current value of the forward contract? First solve for the current forward price Ft of the bond: k=M ck) Hint: F, = dom) - Sk=1 dk,M) S = 920 M = 2 d(0,M) = .924 d(1,M) = 1 d(2,M) = 1 c(k) = 80 current value of contract = -100.324