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Question 1 (1 point) You are given the following forward rates: Number of years forward 0 1 Forward rate 7% 4% 6% 9% 2 3

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Question 1 (1 point) You are given the following forward rates: Number of years forward 0 1 Forward rate 7% 4% 6% 9% 2 3 A 3-year bond with annual coupons has a face value of $1000 and an annual coupon rate of y. The bond is priced at $955.01. Calculate the annual coupon rate, p. a) 5.0% b) 5.5% c) 4.5% d) 4.0% e) 6.0% TML

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