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Q1-Consider a fixed-rate 5-year bond with a principal of $100 which pays fixed annual coupons of $3. Suppose this bond was issued 2 years ago.
Q1-Consider a fixed-rate 5-year bond with a principal of $100 which pays fixed annual coupons of $3. Suppose this bond was issued 2 years ago. Currently, the following yearly interest rates are quoted in the market: ri r? r 3% 4% 4.5% 5% 5.5% Determine the price of this bond. (10 pts.)
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