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) Consider a three-period coupon bond with face value M=100, recovery rate = 0.5, per period coupon rate c = 10%, and survival rate =
) Consider a three-period coupon bond with face value M=100, recovery rate = 0.5, per period coupon rate c = 10%, and survival rate = 0.9. If the spot curve is as follows: 1 = 4%, 2 = 5%, and 3 = 6%. What is the bond price? (use the following diagram)
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