Current spot rates are as follows: 1- Year: 6.5% 2 - Year: 7.0% 3 - Year: 9.2% Which of the following is TRUE（）
A. For a 3 - year annual pay coupon bond, all cash flows can be discounted at 9.2% to find the bond’s arbitrage-free value.
B. The yield to maturity for 3 - year annual pay coupon bond can be found by taking the arithmetic average of the 3 spot rates.
C. For a 3 - year annual pay coupon bond, the first coupon can be discounted at 6.5%, the second coupon can be discounted at 7.0% , and the third coupon plus maturity value can be discounted at 9.2% to find the bond’s arbitrage-free value.
参考答案：C
解析：
Spot interest rates can be used to price coupon bonds by taking each individual cash flow and discounting it at the appropriate spot rate for that year’s payment. Note that the yield to maturity is the bond’s internal rate of return that equates all cash flows to the bond’s price. Current spot rates have nothing to do with the bond’s yield to maturity.