(b) [3 marks] The bank also offers a 3-year bond with face value

10000

, rediamable at par, with

10%

annual coupons. What is the final payment of that bond? Do not enter the

sign: Answer:\ (c) (4 marks] Assuming there are no arbitrage opportunities, what is the price of the above bond? Give your answer to five valid digits. Do not enter the

sign. Answer:

(b) [3 marks] The bank also offers a 3 -year bond with face value 10000, rediamable at par, with 10% annual coupons. What is the final payment of that bond? Do not enter the sign. Answer: (c) [4 marks] Assuming there are no arbitrage opportunities, what is the price of the above bond? Give your answer to five valid digits. Do not enter the sign