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Currently, the term structure is as follows: 1-year zero-coupon bonds yield 7%; 2-year zero-coupon bonds yield 8%; 3-year and longer-maturity zero-coupon bonds all yield 9%.
Currently, the term structure is as follows: 1-year zero-coupon bonds yield 7%; 2-year zero-coupon bonds yield 8%; 3-year and longer-maturity zero-coupon bonds all yield 9%. You are choosing between 1-, 2-, and 3-year maturity bonds all paying annual coupons of 8%. a. What is the price of each bond today? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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