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Assume the zero-coupon yields on default-free securities are as summarized in the following table: Zero-Coupon Yields MaturityYear 1 3.80% MaturityYear 2 4.10% MaturityYear 3 4.40%

Assume the zero-coupon yields on default-free securities are as summarized in the following table: Zero-Coupon Yields

MaturityYear 1 3.80%

MaturityYear 2 4.10%

MaturityYear 3 4.40%

MaturityYear 4 4.80%

MaturityYear 5 5.20%

What is the price of a three-year, default-free security with a face value of $1,000 and an annual coupon rate of 5%?

What is the yield to maturity for this bond?

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