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Value a coupon bond($100 face, 3-year, initial rate is 4%, +/-50 basis points each year) in the uncertain interest rate environment. Thecoupon is 5% of

Value a coupon bond($100 face, 3-year, initial rate is 4%, +/-50 basis points each year) in the uncertain interest rate environment. Thecoupon is 5% of the face value. Coupons are paid annually at the end of the year. What is the expectedvalue of the bond? What is the Annual Equivalent Rate on the bond

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