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User The current 1 - year spot rate ( S 1 ) is 6 % , the 1 - year forward rate for lending from
User The current year spot rate S is the year forward rate for lending from year to year f is and the year forward rate for lending from year to year f is Consider a bond with a coupon rate of that pays annual interest and matures in three years. The face value of the bond is $ Assume the bond has the same liquidity and risk as the benchmark rates given. The arbitragefree value the bond is closest to:
User
The current year spot rate S is the year forward rate for lending from year to year f is and the year forward rate for lending from year to year f is Consider a bond with a coupon rate of that pays annual interest and matures in three years. The face value of the bond is $ Assume the bond has the same liquidity and risk as the benchmark rates given. The arbitragefree value the bond is closest to:
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