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Suppose that all investors expect that interest rates for the 4 years will be as follows: Year Forward Interest Rate 0 4 % (today) 1

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Suppose that all investors expect that interest rates for the 4 years will be as follows: Year Forward Interest Rate 0 4 % (today) 1 5 % 2 6 % 3 10 % What is the price of a 3-year zero-coupon bond with a par value of $1,000

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