.A bond pays a semiannual coupon of $40 and has a current value of $1109. the next payment on the bond is in four months, and the annual interest rate is 6.5%. using an annual compounding assumption,  calculate the price of a six-month forward contract on this bond .

Answer rating: 100% (QA)

To calculate the price of a sixmonth forward contract on the bond we need to consider the time value ... View the full answer