Forward Pricing for Fixed-Rate Bond

A financial analyst is evaluating a 5-year fixed-rate bond with a face value of $1,000 and a coupon rate of 6%, paying semi-annually. The analyst is considering entering into a forward agreement to purchase this bond in six months. The current yield to maturity (YTM) for similar bonds is 5% compounded semi-annually. The analyst needs to determine the proper forward price for the bond at the six-month mark, assuming the bond’s anticipated cash flows remain constant throughout the forward period.

Given these parameters, calculate the theoretical forward price of the bond at the six-month mark using the present value of future cash flows method and the applicable discount rates for the forward period.