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Assume the zero-coupon yields on default-free securities are as summarized in the following table: Maturity 1 year 2 years 3 years 4 years 5 years
Assume the zero-coupon yields on default-free securities are as summarized in the following table:
Maturity | 1 year | 2 years | 3 years | 4 years | 5 years |
Zero-Coupon Yields | 3.003.00% | 3.503.50% | 3.803.80% | 4.204.20% | 4.304.30% |
What is the price of a five-year, zero-coupon default-free security with a face value of $1,000. Round to the nearest cent.
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