A test bond with par value = 100, annual coupon rate = 4.8% (paid semi-annually), maturity = one year, and market price = $100.50 is: (a) Overpriced by $0.93 O (b) Overpriced by $0.07 0 (c) Underpriced by $0.93 O (d) Underpriced by $0.07 (e) None of the above > Question 7 1 pts The arbitrage strategy for each unit of the test bond traded, is to (a) Long 0.0039 units of bond 1 and Long 1.0039 units of bond 2 (b) Long 0.0024 units of bond 1 and Long 1.0024 units of bond 2 O (c) Long 1.0078 units of bond 2 (d) Long 1.0048 units of bond 2 (e) None of the above Use the following information for questions 1-7: The coupon payments for the following bonds are paid semi-annually: Bond 1: Par= $100, Annual Coupon Rate = 0, Maturity= 0.5 yrs, Market Price=98 Bond 2: Par= $100, Annual Coupon Rate = 4, Maturity= 1.0 yr, Market Price=98.8 Bond 3: Par= $100, Annual Coupon Rate = 6.2, Maturity= 1.5 yrs, Market Price=101 =