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Consider the following R1,000 par value zero-coupon bonds (ignore liquidity premiums) Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.50% C

Consider the following R1,000 par value zero-coupon bonds (ignore liquidity premiums)

Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.50% C 3 7.99% D 4 8.49% E 5 10.70% One year from now bond C should sell for ________ (to the nearest rand).

Select one:

a. R821

b. R894

c. R857

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