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Assume you work for a hedge fund and you observe the following schedule of prices for a set of $100 par value, zero-coupon bonds ...
Assume you work for a hedge fund and you observe the following schedule of prices for a set of $100 par value, zero-coupon bonds ... Bond Current Price Maturity (years from now) A B 2 3 $96.15 $89.00 $79.38 You also notice the current price of a 3-year, $1,000 par value, 10% coupon per annum bond is $988.95. Assume all bonds are default-free and interest is paid annually in arrears. What should you do
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