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The prices of zero coupon bonds (all with face value of $1,000) maturing in years 1, 2, 3 are given below. Time to Maturity 1
The prices of zero coupon bonds (all with face value of $1,000) maturing in years 1, 2, 3 are given below.
Time to Maturity 1 2 3
Price 961.54 890.00 816.30
What is the YTM on a risk-free 5% annual coupon bond (face value of $1,000) that matures in three years?
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