Question $1$

Consider an efficient capital market. Assume there are three bonds at $t=0.$

The nominal value of each of the bonds equals $1,000.$ The three bonds

have no default risk. The following data are known.

The $3-$years spot rate $(r_3)$ equals $11\%.$

Question: Calculate the price of bond C$.$ Round your answer to $2$ decimal

places and ignore the euro sign $($e$.$g$.$ enter $1,234\mathrm{.}567$ as $1234\mathrm{.}57)$ Consider an efficient capital market. Assume there are three bonds at t$=0.$ The nominal value of each of the bonds equals $1,000.$ The three bonds have no default risk. The following data are known. Question: Calculate the price of bond C$.$ Round your answer to $2$ decimal places and ignore the euro sign $($e$.$g$.$ enter $1,234\mathrm{.}567$ as $1234\mathrm{.}57)$