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You are given the following information about bonds: Bond Face value Coupon Maturity Price $1000 N/A 1 year $934.45 $1000 N/A 2 years $785,63 IC

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You are given the following information about bonds: Bond Face value Coupon Maturity Price $1000 N/A 1 year $934.45 $1000 N/A 2 years $785,63 IC $1000 8% 2 years ? Calculate the price of C bond using the principles of Arbitrage Portfolio Theory. NOTE: You should find the price using a portfolio of A and B bonds. Calculating spot-rates won't be considered as a right solution. Conclusion

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