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Question 4 It's lunchtime. You are starving, but you are broke. Luckily, you bump into your friend Miel Ticquet, the bond trader. Miel is
Question 4 It's lunchtime. You are starving, but you are broke. Luckily, you bump into your friend Miel Ticquet, the bond trader. Miel is proposing you a bond with coupon rate= 10% with a quarterly coupon frequency and maturity 10 years to be delivered 9 months from now at a price of 89.00. Can you have a free lunch today when interest rates are @ 12%? If so how explain? Present your findings at 4-digit precision level.
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