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Now suppose there is a three-year bond with a $1000 face-value and three $50 dollarcoupons paid by the end of each year, the interest rate

Now suppose there is a three-year bond with a $1000 face-value and three $50 dollarcoupons paid by the end of each year, the interest rate of the current year is 2%, and youexpect it to increase to 4% during years 2 and 3. How much are you willing to pay forthis bond today?

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