Consider a coupon bond, period t = 0 price $900, with payments: t = 0...
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Accounting
Consider a coupon bond, period t = 0 price $900, with payments: t = 0 1 2 3 50 50 1050 Discount (zero coupon) bonds of 1, 2 and 3 years maturity (all with maturity value of $1000) sell for respectively, 960, 900, 820 dollars. Is this coupon bond properly priced? If not, design an arbitrage argument to profit by the mispricing
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