medium · CFA Level I Fixed Income
Meridian Pack issues a three-year annual-pay bond with a 5.0% coupon. The current spot rates for one, two, and three years are z_1 = 3.0%, z_2 = 4.0%, and z_3 = 5.0%.
The no-arbitrage price of this bond per 100 of face value is closest to:
- 100.18
- 100.00
- 102.78
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