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3 . You observe the following market prices for risk - free bonds Bond Maturity Coupon rate Price T - bill 1 Year 0 %
You observe the following market prices for riskfree bonds
Bond Maturity Coupon rate Price
Tbill Year $
Canada Bond Years $
Canada bond Years $
a All bonds have a face value of $ and all coupon bonds have annual coupon payments. Use the above information to price the following riskfree bonds.
A year zerocoupon bond.
A year Canada Bond.
A year Canada Bond.
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