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The one-year ZCB with face value $100 trades for $95. The two-year ZCB with face value $100 trades for 90. Under the law of one
The one-year ZCB with face value $100 trades for $95. The two-year ZCB with face value $100 trades for 90. Under the law of one price, what should be the price of a two-year bond with a coupon rate of 10% and face value of $1000?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
