You are a bond trader, and there has been a power failure in New York City. You and other traders have

taken to a street corner in order to keep trading. You can buy or sell the following bonds with the

following cash flows $($or CF$)$ at the following prices. All bonds mature at or before the end of year $3.$

Bond Price Coupon Face Value

A $100\mathrm{.}005\%$ $$100$

B $95\mathrm{.}002\%$ $$100$

C $112\mathrm{.}009\%$ $$100$

$($Answers$)$

Bond Price

Today

Buy

$($shares$)$

Sell

$($shares$)$

Cash

flow

NOW

Cash

flow

Year $1$

Cash

flow

Year $2$

Cash

flow

Year $3$

A $100\mathrm{.}00$

B $95\mathrm{.}00$

C $112\mathrm{.}00-3$

Total