Question: Exercise 2 ( 2 5 points ) : There are three different kinds of bond that are traded in a market: 1 . Bond A

Exercise 2(25 points): There are three different kinds of bond that are traded in a market:
1. Bond A is worth 500 dollars today, and it will pay a coupon of 100 dollars in three and in six years from now and a face value of 500 dollars in six years from now.
2. Bond B has yield to maturity \( r_{e}=3\%\) and it will pay a face value of 1 dollar in six years from now.
3. Bond C will pay a coupon of 300 dollars in three and in six years from now and a face value of 700 dollars in six years from now.
How much is Bond C worth today if there are no arbitrage opportunities?
Exercise 2 ( 2 5 points ) : There are three

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