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A 5% treasury coupon bond has 2 years left to maturity, it pays annual coupon. Using the arbitrage-free approach to price this security. Suppose you

A 5% treasury coupon bond has 2 years left to maturity, it pays annual coupon. Using the arbitrage-free approach to price this security. Suppose you have the following market data as of today:

1-year treasury spot rate 3%,

2-year zero coupon treasury bond trading at $924.56

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