d) Bonds C and D both pay annual coupons, both heve freation interpretatlon of your result. ( 3 marks) maturity. Bond C has a coupon an coupons, both have face values of E100 and both have two years to c101.93 and bond D 's price is cog. 5% and bond D a coupon rate of 2%. Bond C s price is 101.93 and bond D's price is E96.25. Use absence of arbitrage to infer the price of a zero coupon bond with 1 year to maturity and face value 100