Question: Consider three 5-year regular coupon bonds; each bond has a face value of $100. All bonds mature on the same date. All bonds pay annual

Consider three 5-year regular coupon bonds; each bond has a face value of $100. All bonds mature on the same date. All bonds pay annual coupons at the same point in time. The coupons and current market prices for these bonds are given as following.

Bond COUPON Market PRICE
A $8.000 $95.169
B $4.000 $80.552
C $7.000 $X

Assuming that current market prices of Bond A and Bond B are correct, then what should be the theoretical (fundamental) market price of Bond C, as per the no-arbitrage principle?

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