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A 100% PPN has a retail value of $1000, and will pay back the holder $1000 in 4 years plus some percentage of the gain

A 100% PPN has a retail value of $1000, and will pay back the holder $1000 in 4 years plus some percentage of the gain in the S&P500. How much does the bank have to invest in risk-free bonds today to guarantee the minimum payoff of $1000 if the risk free rate is 5.00% continuously compounded per annum

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