What are the zero-coupon rates implied by these bonds

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Assume that there are two three-year bonds with face values equaling $1000. The coupon rate of bond A is .05 and .08 for bond B. A third bond C also exists, with a maturity of two years. Bond C has a face value of $1000; it has a coupon rate of 11%. The prices of the three bonds are $878.9172, $955.4787 and $1055.419, respectively. The cash-flow structure of bond D-it has a face value of $1000, a maturity of three years and a coupon rate of 3%. Question: What are the zero-coupon rates implied by these bonds Question: What is the arbitrage price of bond D?

Reference no: EM131016136

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