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= = = Given annual effective forward rates: f(0,1] = 5%, $(1,2 = 6%, f(2,3) = 7%. The price of a 4-year coupon bond with

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= = = Given annual effective forward rates: f(0,1] = 5%, $(1,2 = 6%, f(2,3) = 7%. The price of a 4-year coupon bond with face value $1000 and coupon rate 10% (payable annually at the end of each year) is $1, 132.29. Calculate f(3,4) Possible Answers A 6.15% B 6.25% C 7.00% D 8.00% E None of the above

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