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solutions are posted; I just need step by step instructions to get the final answer 2. (4.5 points) You plan to buy a 2-year bond

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2. (4.5 points) You plan to buy a 2-year bond with a face value of $1000 and an annual coupon of 5%. You observe that two other bonds, A and B, are traded. Bonds A is a 2-year bond with a face values of $400 paying a 4% annual coupon. B is a zero coupon bond with a face value of $600. Bond A is priced at par while bond B is priced at $578. If bonds A and B are fairly priced, i.e. discount factors D, and D2 are correct, then what is the price of the bond you want to buy

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