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An investor considers the purchase of a 2-year bond with a 5% coupon rate, with interest paid annually. Assuming the sequence of spot rates shown

An investor considers the purchase of a 2-year bond with a 5% coupon rate, with interest paid annually. Assuming the sequence of spot rates shown below, what is the price of the bond?

Time-to-Maturity Spot Rates

1 year 3%

2 years 4%

Please Show Work and Explain. Thank You.

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