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Suppose that the ask quotes (in dollars and cents per $100 par) are as follows for a series of zero coupon bonds: Maturity: 0.5 years;
Suppose that the ask quotes (in dollars and cents per $100 par) are as follows for a series of zero coupon bonds:
Maturity: 0.5 years; 97.00
Maturity: 1.0 years; 93.88
Maturity: 1.5 years; 90.65
Maturity: 2.0 years; 87.33
Maturity: 2.5 years; 83.72
Maturity: 3.0 years; 79.88
A two-year coupon bond has the same risk as these zeros. The bond promises semi-annual coupons of $58 and a par of $1,000. What is the bond value of this two-year bond?
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