All bonds have a $100 par value Given the information you already know from bond A, B,
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All bonds have a $100 par value
Given the information you already know from bond A, B, & C, let's say you observe bond D, a 3-year zero coupon bond, trading at $59. Is there an arbitrage opportunity? If yes, what price should bond D be traded at such that there wouldn't be an arbitrage opportunity?
Please enter your answer in decimal format and up to 3 decimal places. For example, if your answer is 6.05%, enter .061
| Bond | Maturity | Coupon | Price | |
| A | 1 | 6% | $99.07 | |
| B | 2 | 8% | $100.00 | |
| C | 3 | 10% | $102.53 | |
| D | 3 | 0% | $59 |
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