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Suppose you have a 10-yr inverse floating rate bond that pays an annual coupon of 8% - (1-yr LIBOR), which has a price of 78%

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Suppose you have a 10-yr inverse floating rate bond that pays an annual coupon of 8% - (1-yr LIBOR), which has a price of 78% of face value. Suppose also that the 10-yr 8% coupon bond has a price of 119% of face value. What is the price of the 10-yr zero coupon bond? (nearest $0.01, assume face value $100) Assume that all cash flows are risk free, including the LIBOR rates

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