Question: not pay dividends over the next five years. You also collect information on five zero - coupon bonds: Bond A , B , C ,

not pay dividends over the next five years. You also collect information on five zero-coupon bonds:
Bond A, B, C, D, and E. All bonds have a face value of $100. The price and maturity of these five
bonds as of Jan. 1,2020, is summarized in Table 2 below:
Table 2: Bond Prices on Jan. 1,2020
An investor has just taken a long position in a 5-year forward contract on the stock (i.e., expiration
date is January 1,2025).
On January 1,2021, the stock price decreases to $95 and the updated bond prices for each maturity
is summarized in Table 3 below:
Table 3: Bond Prices on Jan. 1,2021
(b) What is the price of Bond A on January 1,2021?
(c) What is the current forward price on the stock with the same expiration date of January 1,2025?
(d) What is the value today (i.e., on January 12021) of the original long position in the forward
contract established on January 1,2020?
 not pay dividends over the next five years. You also collect

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