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If you deposit $1,000 in the bank for two years, based on the risk-free rate, you will receive $1,100 at the end of the deposit
If you deposit $1,000 in the bank for two years, based on the risk-free rate, you will receive $1,100 at the end of the deposit period. A similar risk-free semi-annual bond with a maturity of 2-years offers you an annual coupon rate of 7%. What should be the bonds price?
950.90
1075.35
1172.99
1039.47
1041.04
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