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Suppose that you have decided to fund a three-year liability (no interest payments) with a portfolio consisting of positions in a two-year zero-coupon bond (2YR)
Suppose that you have decided to fund a three-year liability (no interest payments) with a portfolio consisting of positions in a two-year zero-coupon bond (2YR) and a four-year zero-coupon bond (4YR), both with face value of $1000. The current interest rate level is 11%. What is the price of each bond? Round your answer to the nearest cent:
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