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1. On May 15, 2020, 10-year pure discount bonds (maturing May 2030) issued by the US Treasury with a $100,000 face value were trading with
1. On May 15, 2020, 10-year pure discount bonds (maturing May 2030) issued by the US Treasury with a $100,000 face value were trading with an annual yield of 0.625%. Assume the market placed a zero percent probability on the likelihood of default. Question: At what price were the pure discount bonds trading in the market at the time of issue?
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