Question: A bond with face value $100 has maturity in 3 years, it pays annual coupon of $26 in arrears. The bonds current value is $129.

A bond with face value $100 has maturity in 3 years, it pays annual coupon of $26 in arrears. The bonds current value is $129.

With continuous compounding. What is the forward price of the bond in 18 months?

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