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Bond annual coupon rate = 5.5% Face value = $1,000 Years until maturity = 3 Current bond price = $1,040.36 2-year spot rate = 5%

Bond annual coupon rate = 5.5%

Face value = $1,000

Years until maturity = 3

Current bond price = $1,040.36

2-year spot rate = 5%

3-year spot rate = 4%

What is the 1-year spot rate?

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