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Exercise 3. Suppose you observe a one year zero coupon bond with par value $1000 is selling for $925, and a two year zero coupon

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Exercise 3. Suppose you observe a one year zero coupon bond with par value $1000 is selling for $925, and a two year zero coupon bond with par value $1000 is selling for $800. In order for there to be no arbitrage opportunity, what must be the price of a two year, 5% coupon bond with par value $1000

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