A default-free zero-coupon bond costs 91 and will pay 100, Risk Management

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A default-free zero-coupon bond costs 91 and will pay 100

A default-free zero-coupon bond costs $91 and will pay $100 at maturity in one year. What will the payoff/profit diagram for this bond look like? Ignore the time value of money for this problem (just like we do for all the other payoff/profit tables).

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Risk Management: A default-free zero-coupon bond costs 91 and will pay 100

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