Forward Rate Agreement another, question, contract, 310, 150

morebeans

In the below question, "The bond has just paid a coupon and will make another coupon payment in 150 days". Hence, shouldn't we assume that the coupons are not semi-annual. They are paid every 150 days instead. And in such a case, each coupon will not be $4.

Any comments would be appreciated.


Calculate the price of a 200-day forward contract on an 8% U.S. Treasury bond with a spot price of $1,310. The bond has just paid a coupon and will make another coupon payment in 150 days. The annual risk-free rate is 5%.

Answer is as follows:

Coupon = (1,000