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The Federal Government 2-year coupon bond has a face value of $1,000 and pays annual coupons of $33. The next coupon is due in one
The Federal Government 2-year coupon bond has a face value of $1,000 and pays annual coupons of $33. The next coupon is due in one year. Currently, the one and two-year spot rates on Federal Government zero coupon bonds are 4% and 4.5%. What is the correct price for the coupon bond at time zero (immediately)? O A. $977.68 O B. $1,025.00 O C. $1,023.49 OD. $1,000.00 O E. $976.17
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