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Pert I 1) Consider the following investiment opporturities. A: pay 30000 at time 0 get the accumulation volue of 30000 at time t=5% under the

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Pert I 1) Consider the following investiment opporturities. A: pay 30000 at time 0 get the accumulation volue of 30000 at time t=5% under the annul sinple interest vate ia=3% B : pay 20.000 at time 0 get 15000 at lime 2 and - Compare A and B by using the IRR. Pert II 2) In a 3-period market there are 3 bonds. B1 is a 2.C.B with matority 1 face volue C1=1000, price P1=900 B2 is a coupon bond, with maturity 2, fece volue 5000=C2 coupon I2=100,P2=4800 B3 is a coupon bont with ineturity 3 , C3=10000,couponI3=100,P3=9000 a) construct the term stuctore b) Let x={5000,10000,10000}{{1,2,3} e contract with price Px=20000. Construct, if possible en arbilage

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