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Given: Year One-year forward rate 1 5.8% 2 6.4% 3. 7.1% What should the purchase price of a 2-year zero-coupon bond be if it is

Given:

Year One-year forward rate

1 5.8%

2 6.4%

3. 7.1%

What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000?

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