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What is the fair price of a 5-year government bond with a 8% coupon rate and a face value of $1000? The spot rates in

What is the fair price of a 5-year government bond with a 8% coupon rate and a face value of $1000? The spot rates in this economy are as follows:

1-year 8.50%

2-year 9.00%

3-year 9.50%

4-year 9.75%

5-year 10.00%

Cashflows/Coupons are paid annually.

947.74

1004.12

1004.44

927.74

872.59

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