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Assume the current yield curve shows that the spot rates for six months, one year, and one and a half years are 1%, 1.1%
Assume the current yield curve shows that the spot rates for six months, one year, and one and a half years are 1%, 1.1% and 1.3%, respectively, all quoted as semi-annually compounded APRS. What is the price of a $1000 par, 4% coupon bond maturing in one and a half years (the next coupon is exactly six months from now)? The price of this bond is $ . (Round to the nearest cent.) Problem 6.10
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