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Security Name Price Today ($) Cash Flow in Cash Flow in Cash Flow in One Year ($) Two Years ($) || Three Years ($) B1

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Security Name Price Today ($) Cash Flow in Cash Flow in Cash Flow in One Year ($) Two Years ($) || Three Years ($) B1 B2 B3 $93.55 $86.37 $396.92 100 0 0 100 0 0 500 0 0 Calculate the no-arbitrage price, or the price that eliminates any arbitrage opportunities, of a new security, B4, that pays risk-free cash flows of $500 in one year and $1,000 in three years. The current no-arbitrage price of Security B4 is: (round your answer to two decimal places) Enter your answer in the answer box

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