The one-year ZCB with face value $100 trades for $95. The two-year ZCB with face...
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Accounting
The one-year ZCB with face value $100 trades for $95. The two-year ZCB with face value $100 trades for 90. Under the law of one price what should be the price of a two-year bond with a coupon rate of 10% and face value of $1000.
(a) 995 (b) 1000 (c) 1085
(d) There is not enough information.
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