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The promised cash flows of three securities are listed below. If the cash flows are risk-free, and the risk-free interest rate is 3.5%, determine the
The promised cash flows of three securities are listed below. If the cash flows are risk-free, and the risk-free interest rate is 3.5%, determine the no-arbitrage price of each security before the first cash flow is paid. \begin{tabular}{ccc} Security & Cash Flow in One Year (\$) & Cash Flow in Two Years (\$) \\ \hline A & 700 & 700 \\ B & 0 & 1,400 \\ C & 1,400 & 0 \\ \hline \end{tabular} The no-arbitrage price of security A is $ (Round to the nearest cent.) The no-arbitrage price of security B is $ (Round to the nearest cent.)
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