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The term structure of effective annual yield rates for zero coupon bonds is given as: 1 and 2 year maturity, 8% ; 3 and 4
The term structure of effective annual yield rates for zero coupon bonds is given as: 1 and 2 year maturity, 8% ; 3 and 4 year maturity, 10%; 5 and 6 year maturity is 12%. Find the price of a six year bond with face amount 1000, and annual coupons at rate 3%. The first coupon will be paid in one year.
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