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The current yield curve is given by: r = 0.05 +0.005 where r denotes the t-year annual effective spot rate for t = 1,2,3... Calculate

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The current yield curve is given by: r = 0.05 +0.005 where r denotes the t-year annual effective spot rate for t = 1,2,3... Calculate the price of 2-year bond with face value $1,000 and annual coupon rate of 5% paid at the end of each year (keep 2 decimal places in your answer)

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