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Question 10 10 pts The discount factor is 1/(1+r). The one year discount factor is 0.95. Two-year discount factor is 0.9. Three-year discount factor
Question 10 10 pts The discount factor is 1/(1+r). The one year discount factor is 0.95. Two-year discount factor is 0.9. Three-year discount factor is 0.86. What is a fair market price of a bond that matures in three years, pays annual coupons at the rate of 5% each year, and repays its principal at the end of the third year. 903.00 995.50 1000 947.50
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