Question: PLEASE SHOW FULL EXPLANATIONS Consider a bond with face value 100, with maturity in three years and paying annual coupons of 21 in arrears. The

PLEASE SHOW FULL EXPLANATIONS

Consider a bond with face value 100, with maturity in three years and paying annual coupons of 21 in arrears.

The face value of the bond is 128.

The forward price of the bond in 18 months (to the nearest penny) is ________

The yield volatility is 33%. The volatility of this forward bond price (to four decimal places) is _______ (Note: this is not a percent).

A put option on this bond, with maturity 18 months, and strike price K = 127 has present value _________(to the nearest penny).

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