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The Energy Company wants to issue a new three-year bond with the following cash flows: Price (Today) End Year End Year End Year 0 1

The Energy Company wants to issue a new three-year bond with the following cash flows:

Price (Today) End Year End Year End Year
0 1 2 3
? 100 80 60

If there are no arbitrage opportunities, what is the price of this new bond?

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