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The following are the 1 year forward rates over the next three years: Period Rate ( % ) 0 y 1 y 2 . 5

The following are the 1 year forward rates over the next three years:
Period Rate (%)
0y1y 2.58
1y1y 3.41
2y1y 4.51
What is the fair value of a default-free straight bond with 3 years to maturity, annual coupon payments, and 9.4% coupon rate?

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