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11. [.30 points 1 Suppose that a risk free project produces the following cash flows : Moreover ,suppose that there are three risk free bonds

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11. [.30 points 1 Suppose that a risk free project produces the following cash flows : Moreover ,suppose that there are three risk free bonds in the market (Bonds A, B, and C} that can be described as follows : a) Bond A pays a $10 coupon at t=1 and matures at t=2 when the bondholders will receive $100. Today (i.e., at t=0) the market price of the bond is Ba = $98.75. b) Bond B pays a $7 coupon at t=1 and also matures at t=2 when the bondholders will receive $120 . Its price today is Bb=$113.63. c) Bond C is a zerocoupon bond that matures at t=3 when the bondholders will receive $100 . lts price today is BE=$75.13 . Using this information , determine the net present value (NPV ) of the risk tree project

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