2. a. (10 pts) Consider a bond with face value $100 maturing in 5 years and $C coupons paid yearly. Determine the no arbitrage value of C, if the initial value of the bond is $200 when the continu- ously compounded interest rate is given by 3%. b. (10 pts) Consider another zero coupon bond with face value $25 maturing in t = 5 years, in the , same market as part (a.). If you hold a bond of type given in part (a), and decide to sell it after 15 months (t=1.25), how many zero coupon bonds with face value $25 maturing at t = 5, you can buy at t 1.25? = a = =