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Assume thezero-coupon yields ondefault-free securities are as summarized in the followingtable: Maturity 1 year 2 years 3 years 4 years 5 years Zero-Coupon Yields 3.10%
Assume thezero-coupon yields ondefault-free securities are as summarized in the followingtable:
Maturity
1 year
2 years
3 years
4 years
5 years
Zero-Coupon Yields
3.10%
3.50%
3.70%
4.00%
4.30%
What is the price of afive-year, zero-coupondefault-free security with a face value of $1,000?
The price is $
nothing
. (Round to the nearestcent.)
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