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We have the following yield curve: 12% at 1-year, 10% at 2-year, 7% at 3-year, and 4% at 4-year. What is the value of 2-year,
We have the following yield curve: 12% at 1-year, 10% at 2-year, 7% at 3-year, and 4% at 4-year.
What is the value of 2-year, 15% annual coupon bond with par of $1,000?
Please use the yield curve to value the bond.
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