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All three of these bonds pay interest annually. 1 . What is the price of the ABC bond? 2 . What is the price of

All three of these bonds pay interest annually.

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1. What is the price of the ABC bond?

2. What is the price of the XYZ bond?

3. What is the price of the NNN bond?

Spot Rates BondCoupon Time-to-Maturity Time-to Maturity Rate ABC 3 years 3 years 3 years 5% year 5% XYZ 5% 2 years 7% 4% 3 years 5%

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