Solved: What is the current value of the forward contract, Business Law and Ethics

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What is the current value of the forward contract

Problem:

A certain 10-year bond is currently selling for $920. A friend of yours owns a forward contract of this bond that has a delivery date in 1 year and a delivery price of $940. The bond pays coupons of $80 every 6 months, with one due months form now and another just before maturity of the forward. The current interest rates for 6 months and 1 year (compounded semiannually) are 7% and 8% respectively (annual rates compounded every 6 months). What is the current value of the forward contract?

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