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Definitions are important an example of other weirdness with bond definitions. Recall that US Money market dealers, who deal in bonds with less than 1

Definitions are important an example of other weirdness with bond definitions. Recall that US Money market dealers, who deal in bonds with less than 1 year to maturity, use something called bank discount rates. Suppose a US dealer agrees to a quoted rate of 6% for a term of 90 days for a zero with a $100,000 face value. To two decimal places, what is the price of the bond?

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