5. In the market, interest rates are not always constant over different time horizons. In these cases we can often use observed market data and the No Arbitrage Condition (NAC) to obtain prices for other assets. Assume that we observe the following prices for three zero-coupon bonds. Find The periodic interest rates 5-4. and The NAC price for ASSET D a. b. CASH FLOws EOP BOND A BOND B BOND C ASSET D 0 1 S100 s 10 s 10 S 210 $ 100 S 100 5. In the market, interest rates are not always constant over different time horizons. In these cases we can often use observed market data and the No Arbitrage Condition (NAC) to obtain prices for other assets. Assume that we observe the following prices for three zero-coupon bonds. Find The periodic interest rates 5-4. and The NAC price for ASSET D a. b. CASH FLOws EOP BOND A BOND B BOND C ASSET D 0 1 S100 s 10 s 10 S 210 $ 100 S 100