Please solve for A and B.

Please show your work.

Please explain your reasoning.

Consider a 10-month forward contract on a coupon-paying bond. The bond price today is $1,050. The bond is expected to pay a coupon of $25 in 3 months and another coupon of $25 in 9 months. The 3-month risk-free rate is 2% per annum, the 9-month risk-free rate is 2.5% per annum, and the 10-month risk free rate is 2.75% per annum. All rates are continuously compounded a) Calculate the theoretical (no-arbitrage) forward price. b) If the actual forward price is $1,035, would you buy or sell the forward contract as a part of your arbitrage strategy