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13. Calculate the price of a $1,000 face value three-year 3.50% annual coupon corporate bond assuming spot rates are 2.875%, 3.125%, and 3.625% for one,
13. Calculate the price of a $1,000 face value three-year 3.50% annual coupon corporate bond assuming spot rates are 2.875%, 3.125%, and 3.625% for one, two, and three years, respectively. Assume a static Z-spread of 85 basis points. Show your calculations and use continuous compounding.
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