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You are given the following prices and cash flows associated with bonds. CF stands for cash flow. Table for Problem 4 Bond Price Today CF
You are given the following prices and cash flows associated with bonds. CF stands for cash flow. Table for Problem 4 Bond Price Today CF Year 1 CF Year 2 CF Year 3 A 105.185 10 10 110 B 90.371 100 0 0 C 91.784 5 105 0 D 15 15 115 What is the current price of Bond D as per the no-arbitrage principle? In other words, what is the value of X? (Round-off your final answers to at least four decimal places. For intermediate steps, round-off to at least six decimal places, so that
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