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Assume the current Treasury yield curve shows that the spot rates six months, one year, and one and a half years are 1%, 1.1% and
Assume the current Treasury yield curve shows that the spot rates six months, one year, and one and a half years are 1%, 1.1% and 1.3%, all quoted as semiannually compounded APRs. What is the price of a $1,000 par, 4% coupon bond maturing in one and a half year s (the next coupon is exactly 6 months from now)?
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