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A 4-year German government bond (bund) has a face value of 100 and a coupon rate of 5% paid annually. At the moment, the spot
A 4-year German government bond (bund) has a face value of 100 and a coupon rate of 5% paid annually. At the moment, the spot interest rates in the market follow a downward-sloping term structure: r1 = 4.6%, 12 = 4.4%, 13 = 4.2% and r: = 4.0%. What is the bond price
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