We have the following information on three risk-free bonds:
Current Price Year 1 payout Year 2 payout Year 3 payout
Bond A 95 100 0 0
Bond B 98 10 100 0
Bond C 85 0 0 100
Given the previous information, what is the price of a risk-free annual coupon bond with a maturity
of 3 years, a par value of $100, and a 10% coupon rate?
We have the following information on three risk-free bonds: Current Price Year 1 payout Year 2 payout Year
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