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Spot interest rates today look like this: 1 - year 1 . 8 % 2 - year 4 . 4 % 3 - year 5
Spot interest rates today look like this:
year
year
year
A bond with a coupon and a face value of $ matures in years. What is its current market price? When calculating the price, use annual not semiannual discounting.
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