Find the forward price for delivery of bond

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Reference no: EM131995546

A treasury bond has a face value of $14500, semi-annual coupons paid at the annual rate of 7% compounded semi-annually, and several years to maturity. Currently this bond is selling for $11050. Assume that the risk-free interest rate of 2% is compounded continuously, and that the previous coupon has just been paid.

Find the forward price for delivery of this bond in 9 years (right after the coupon date):

Reference no: EM131995546

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