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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
4.00
%
4.30
%
4.50
%
4.70
%
4.80
%
What is the price of a five-year, zero-coupon default-free security with a face value of
$ 1 comma 000
?
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