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Suppose, there is a zero coupon bond with a face value of $1000. The bond will mature in 3 years from now, and the YTM

  1. Suppose, there is a zero coupon bond with a face value of $1000. The bond will mature in 3 years from now, and the YTM is 5%. What is the price of this bond today (use semi-annual compounding)?

  1. $863.84
  2. $884.63
  3. $962.30
  4. $862.30

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