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Question 21 (3 points) Suppose the yield curve shows 1 year rates at 5%, 2 year rates at 10% and 3 year rates at 15%.

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Question 21 (3 points) Suppose the yield curve shows 1 year rates at 5%, 2 year rates at 10% and 3 year rates at 15%. What is the price of a bond with a $1000 par value, maturity 3 years and annual coupon payment of $50? Show work for credit. Question 22 (3 points) Assume that you are considering the purchase of a 10-year, noncallable bond with

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