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(d) What is the price of a 2-year maturity bond with a 10% coupon rate paid annually? Suppose that all investors expect the following pattern

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(d) What is the price of a 2-year maturity bond with a 10% coupon rate paid annually?

Suppose that all investors expect the following pattern of interest rates: Year 0 Forward Interest Rate (spot, today) 5% 7% 9% 10% 1 2 3 Assuming the par value of bonds is $1000

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