medium · CFA Level I Fixed Income
Nadir Components is analyzing a bond with a 5% annual coupon that matures in 3 years. The current spot rates for years 1, 2, and 3 are 3%, 4%, and 5%, respectively.
Using the no-arbitrage principle, the price of the bond per 100 of par is closest to:
- 100.18
- 97.23
- 100.00
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