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Suppose the price of a 1-yr ZCB is 900, and that the price of a 2-yr ZCB is 800. Both bonds have a 1000 face

Suppose the price of a 1-yr ZCB is 900, and that the price of a 2-yr ZCB is 800. Both bonds have a 1000 face value. If there is no arbitrage, what is the price of a 2-yr coupon bond with a 10% coupon rate?

A. 890

B. 1700

C. 970

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