Question: please help me out 3. There are three bonds trading in the market. These bonds are issued by one Energy company. The bonds are very

please help me out

please help me out 3. There are three bonds trading in the

3. There are three bonds trading in the market. These bonds are issued by one Energy company. The bonds are very liquid. Investors can buy or short-sell them. The following table shows the current price of the bonds, and their three-year cash flows. Price (Today) End Year 0 2 143 0 30 180 135 60 0 160 105 20 20 120 a. What is the YTM of each Bond? b. What are the spot rates implied from these bonds? The Energy Company wants to issue a new three-year bond with the following cash flows: Price (Today) End Year 0 2 100 80 60 c. If there are no arbitrage opportunities, what is the price of this new bond

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