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The current 1 year spot rate is 3%, 1 year forward rate for lending from t=1 to t=2 is 4%, for lending from t=2 to
The current 1 year spot rate is 3%, 1 year forward rate for lending from t=1 to t=2 is 4%, for lending from t=2 to t=3 is 5%. What are the values of a 3-year annual pay bond with a 2% coupon and a par value of $1000?
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