微信扫一扫
实时资讯全掌握
|
A three-year bond with a 10% annual coupon has cash flows of $100 at year 1, $100 at year 2, and pays the final coupon and the principal for a cash flow of $1,100 at year 3. The spot rate for year 1 is 5%, the spot rate for year 2 is 6%, and the spot rate for year 3 is 6.5%. What is the arbitrage-free value of the bond? A. $1,094.87. B. $1,050.62. C. $975.84. |