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Given the following spot yield curve, what is the equilibrium price of a 3-year, 5% annual coupon bond paying a principal of $1,000 at maturity?

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Given the following spot yield curve, what is the equilibrium price of a 3-year, 5% annual coupon bond paying a principal of $1,000 at maturity? MATURITY SPOT RATE 1-YEAR 5.0% 2-YEAR 5.5% 3-YEAR 6.0% 4-YEAR 6.5% [A] $874.14 [B] $974.14 [C] $924.14 [D] $994.14

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