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The bonds used to compute this curve are all zero-coupon bonds, with a face value of $1,000. About how much would you expect to pay
The bonds used to compute this curve are all zero-coupon bonds, with a face value of $1,000. About how much would you expect to pay today for a five-year, zero coupon Treasury Bond? (Hint: each zero coupon bond will pay its owner $1,000 at the end of the bond contract, and nothing before then). Treasury Securities Yield Curve 0.09 0.08 0.07 0.06 0.05 Yield to Maturity ( ) 0.04 0.03 0.02 0.01 0 0.0 2.0 10.0 12.0 4.0 6.0 8.0 Time to Maturity (Years) O C) 765 OA) 924 E) None of the listed answers are within 20% of the correct value B) 623 D) 681
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