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Spot rates of interest for zero-coupon Government of Canada bonds are observed for different terms to maturity as follows: 1-year spot rate 6% 2-year spot
Spot rates of interest for zero-coupon Government of Canada bonds are observed for different terms to maturity as follows: 1-year spot rate 6% 2-year spot rate 6.5% 3-year spot rate 7% A 3-year bond has a face value of $1,000 and a coupon rate of 7%. It pays coupons annually. What is its value today?
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