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5 The prices of three zero-coupon bonds are provided in the table below. All three bonds have a face value of $1,000 The three bonds

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5 The prices of three zero-coupon bonds are provided in the table below. All three bonds have a face value of $1,000 The three bonds have three different terms to maturity. What is the yield on the bond with 3 years to maturity? (K3) Maturity Price Yield 1 year $96535 2 years $923 24 k1 k2 k3 3 years $88525 Financial calculator N=3 PV = 885 25 o 6C a ENG TOT PM 2021.11.1 DELL F4 FS 76 F7 F10 F12 3 40 F11 40 linsert FB A Delete F9 P Priser T 1 A + ) $ 4 % 5 & 7 0 Backspace 6 8 9 { E R T Y U 1 O P 1 D F F G H J Enter c K L M>? c V B N Shit M 3 years $885.25 3 k3 Financial calculator, N = 3 PV = -885.25 PMT = 0 (zero cpn) FV = 1,000 CPTIVY Select one: O a. 4.32% O b.4.02% O c.4.35% O d. 4.51% O e. 4.15% on 24 Consider holding a coupon bond for one vear. If interest rates don't O Tg DELL

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