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leter l;, Which of the following is correct: |tA > tB The following information refers to parts A-B There are two bonds, B1 and B2.

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leter l;, Which of the following is correct: |tA > tB The following information refers to parts A-B There are two bonds, B1 and B2. Bond B1 matures in one year and pays 100 at maturity. Bond B2 matures in two years and pays 25 in year 1 and 75 in year 2. The current prices of these bonds are as follows: PBI = 95, PB2 = 93. A) The discount factor for year 1 is 0.9233 B) Which portfolio of the available bonds replicates a two-year zero coupon bond that pays 100 at maturity? Numbers are rounded to 4 decimals. n = (-0.3333, -1.3333)' 4 X

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