Question: Suppose the current time is t = 0 and consider a 20 year fixed coupon bond A that pays coupons $50 at years 1, 2,

Suppose the current time is t = 0 and consider a 20 year fixed coupon bond A that pays coupons $50 at years 1, 2, . . . , 20 with the face value of $1000 and trades currently at a price $1300, and another 20 year fixed coupon bond B that pays coupons $10 at years 1, 2, . . . , 20 with the face value of $100 and trades currently at a price $210. What is the no-arbitrage price of a 20 year fixed coupon bond C that pays coupons $70 at years 1, 2, . . . , 20 with the face value of $1000?

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