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Suppose you are given the following information about the coupon rates and yield-to-maturities (YTMs) of four default-risk free bonds: Maturity (years) 1 2 3 4

Suppose you are given the following information about the coupon rates and yield-to-maturities (YTMs) of four default-risk free bonds:

Maturity (years) 1 2 3 4
Coupon rate 0.00% 8.00% 6.00% 12.00%
YTM 2.000% 3.908% 5.840% 5.783%

If you assume that coupons are paid, and interest is compounded, annually, then what is the price of a 4% coupon bond with four years to maturity and a face value of $100 closest to?

Group of answer choices

$93.36

$81.04

$88.73

$96.89

$75.70

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