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.
