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Assume the following list of prices for zero-coupon bonds with different maturities and par value of $1,000. Maturity (Years) Prices 1 $985.00 2 $925.50 3
Assume the following list of prices for zero-coupon bonds with different maturities and par value of $1,000. Maturity (Years) Prices 1 $985.00 2 $925.50 3 $875.00 4 $800.50 According to the expectations theory, what would be the price of a two-year zero at the beginning of year 3? (Do not round your intermediate cala
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