4. (*) Consider a 2-year forward to buy a bullet bond 4% coupon rate with semi-annual payments, 3 years remaining to maturity, and notional 100. (a) Suppose that the current bond price is 105, and that the 6-month, 12-month, 18-month and 24-month zero-coupon interest rates (continuously compounded) are, respectively, 1%, 1.3%, 1.6% and 1.9% per annum. Determine the delivery price, the forward price and the value of the forward contract. (b) 15 months later, the price of the bond is 90 and the zero-coupon interest rates for maturities 3-month, 9-month, are, respectively, 0.6% and 0.9%. What are the strike price, the forward price and the value of the forward contract? 4. (*) Consider a 2-year forward to buy a bullet bond 4% coupon rate with semi-annual payments, 3 years remaining to maturity, and notional 100. (a) Suppose that the current bond price is 105, and that the 6-month, 12-month, 18-month and 24-month zero-coupon interest rates (continuously compounded) are, respectively, 1%, 1.3%, 1.6% and 1.9% per annum. Determine the delivery price, the forward price and the value of the forward contract. (b) 15 months later, the price of the bond is 90 and the zero-coupon interest rates for maturities 3-month, 9-month, are, respectively, 0.6% and 0.9%. What are the strike price, the forward price and the value of the forward contract