45. You have priced two pure discount bonds, each with five years to maturity and each...

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45. You have priced two pure discount bonds, each with five years to maturity and each with a face value of $1,000. The first bond sells for $780.58 while the second bond sells for $667.43. The expected return on the market portfolio is 12% while the term structure is flat with the risk free rate at 5%. 45. You have priced two pure discount bonds, each with five years to maturity and each with a face value of $1,000. The first bond sells for $780.58 while the second bond sells for $667.43. The expected return on the market portfolio is 12% while the term structure is flat with the risk free rate at 5%.