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Assume that you are looking at a 5-year bond that pays an annual coupon of $30 each year and will mature for $1,000 in

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Assume that you are looking at a 5-year bond that pays an annual coupon of $30 each year and will mature for $1,000 in 5 years. Also assume the Pure Expectations Theory of the term structure and that investors expect 1-year rates for each of the next 5 years to be Year 1 -3.00%; Year 2 - 3.00%; Year 3-5.00% : Year 4 7.00%; and Year 5 8.00%. Given this information, determine the nominal. annual yield to maturity on this security. O 4.887% 5.042% 05.092% O 4.957% 5.168%

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