Question: Show me the steps to solve Consider a long forward contract to purchase a coupon - bearing bond whose current price is 6 5 0

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Consider a long forward contract to purchase a coupon-bearing bond whose current price is 650. We will suppose that the forward contract matures in 9 months, and a coupon payment of 28 is expexted after 4 months. We suppose that the 4-month and 9-month risk-free interest rates (continuously compounded) are 3% and 4% per annum.

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