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12. Calculate the price of a $1,000 face value two-year 4.50% annual coupon government bond assuming spot rates are 3.875% and 4.125% for one and

12. Calculate the price of a $1,000 face value two-year 4.50% annual coupon government bond assuming spot rates are 3.875% and 4.125% for one and two years, respectively. Show your calculations and use continuous compounding.

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