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Bond A has the following features: Face value = $1,000, Coupon Rate = 4%, Maturity = 8 years, Yearly coupons The market interest rate is
Bond A has the following features: Face value = $1,000, Coupon Rate = 4%, Maturity = 8 years, Yearly coupons The market interest rate is 5.7% If interest rates remain at 5.7%, what will the price of bond A be in year 1? Question 14 1 pts Term (years) Today's Rate 1 3.21% 2 3.66% 3 3 3.94% Based on the expectations hypothesis, what does the market expect the 1 year rate in 1 year to be? State your answer as a percentage to 2 decimal places (e.g., 4.39)
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