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spot rate (1 year)=2% spot rate (2 years)=3%. Face value = $1000 Coupon rate=3% paid annually. Assume it is a 2-year bond. Find the bond

spot rate (1 year)=2%

spot rate (2 years)=3%.

Face value = $1000

Coupon rate=3% paid annually.

Assume it is a 2-year bond. Find the bond price.

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