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The term structure is defined by s_t = 0.05 + 0.005 t, for t = 1, 2, 3, 4. A three year annuity-immediate will be

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The term structure is defined by s_t = 0.05 + 0.005 t, for t = 1, 2, 3, 4. A three year annuity-immediate will be issued one year from now with annual payments of 1000. Using the appropriate forward rates, compute the present value of this annuity one year from now

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