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4) Suppose that a zero coupon bond expiring in 1 year is trading at $98. Also, a two year bond which pays an annual coupon

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4) Suppose that a zero coupon bond expiring in 1 year is trading at $98. Also, a two year bond which pays an annual coupon of $3 is trading at $99.94 (so, this bond pays $3 in 1 year and $103 in 2 years). a) At what price should the coupon to be paid in 1 year trade today? b) What should the price of a 2-year zero-coupon bond be

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