Q5. Assume that the bond market is perfect, and the rate of return is same as the market interest rate by no arbitrage condition. Say
Q5. Assume that the bond market is perfect, and the rate of return is same as the market interest rate by no arbitrage condition. Say the face value of the one-year maturity bond is $2200 and the market interest rate is 10%. There is no other payment related to the bond (no coupon payment). What is the current price of the bond
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