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2. Imagine that there are 2 securities trading. The first pays $1 in 6 months if Manchester United win the English Premier League (which, of

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2. Imagine that there are 2 securities trading. The first pays $1 in 6 months if Manchester United win the English Premier League (which, of course, we all know will happen). The second pays $1 in 6 months if Manchester United do NOT win the Premier League. The prices of these 2 securities are $0.80 and $0.18, respectively. a. Assuming no transaction costs for buying or selling any securities, what must be the price of a 6-month, zero coupon bond with a face amount of $1,000? 2. Imagine that there are 2 securities trading. The first pays $1 in 6 months if Manchester United win the English Premier League (which, of course, we all know will happen). The second pays $1 in 6 months if Manchester United do NOT win the Premier League. The prices of these 2 securities are $0.80 and $0.18, respectively. a. Assuming no transaction costs for buying or selling any securities, what must be the price of a 6-month, zero coupon bond with a face amount of $1,000

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