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Consider the following risk-free government bonds with fixed coupons paid annually at the end of every year. None of the bonds have any callable or
Consider the following risk-free government bonds with fixed coupons paid annually at the end of every year. None of the bonds have any callable or puttable features. Assume that the current coupon (payable at t=0) has already been paid, i.e., the prices are quoted ex-coupon. The table below reports coupons, market prices, face values and the time to maturity for each bond:
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