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The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000. Maturity (Years) Price 1 $943.40 $881.68
The following is a list of prices for zero coupon bonds with different maturities and par value of $1,000. Maturity (Years) Price 1 $943.40 $881.68 3 $808.88 4 $742.09 You have purchased a 4-year maturity bond with a 10% coupon rate paid annually. The bond has a par value of $1,000. What would the price of the bond be one year from now if the implied forward rates stay the same? $808.88 $1,042.78 none of the above $1,000 $1,108.88
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