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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

image text in transcribed 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 35.00%; Year 4=7.00%; and Year 5= 8.00\%. Given this information, determine the nominal, annual yield to maturity on this security. 4.887% 4.957% 5.042% 5.168% 5.092%

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