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The discount factor is 1/(1+r). The one year discount factor is 0.92. Two-year discount factor is 0.8. Three-year discount factor is 0.84. What is a
The discount factor is 1/(1+r). The one year discount factor is 0.92. Two-year discount factor is 0.8. Three-year discount factor is 0.84. What is a fair market price of a bond that matures in three years, pays annual coupons at the rate of 6% each year, and repays its principal at the end of the third year.
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