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A one-year, risk-free, zero-coupon bond with face value $100 is currently trading at a price of $90. A two-year, risk-free, zero-coupon bond with face value
A one-year, risk-free, zero-coupon bond with face value $100 is currently trading at a price of $90. A two-year, risk-free, zero-coupon bond with face value $100 is currently trading at a price of $92. A three-year, zero-coupon bond with face value $100 is currently trading at a price of $93. What is the no- arbitrage price of a risk-free, three-year, 10% annual coupon bond with $1000 face value? (round to the nearest dollar).
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