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The current and expected one-year rates are as follows for treasury securities: Year 1: 5.0% Year 2: 6.0% Year 3: 7.0% A three-year 5% coupon

The current and expected one-year rates are as follows for treasury securities:

Year 1: 5.0%

Year 2: 6.0%

Year 3: 7.0%

  1. A three-year 5% coupon (annual payments) treasury security with a par of $1000. What should be the bonds price? Show your answer as a positive number, in $ and round to two decimal places ($xxx.xx).
  2. What is the bonds YTM? Show your answer in % and round to two decimal places (xx.xx%)

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