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A dealer has just entered into a short forward position. The underlying asset is currently traded at $100 and the 1-year forward price is $105.

A dealer has just entered into a short forward position. The underlying asset is currently traded at $100 and the 1-year forward price is $105. Assuming an annual effective rate of 3%, find the number of 100 zero-coupon bonds that the dealer has to buy to hedge the position.

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