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What is the price of a 4-year, 12% coupon (paid annually), $1,000 par value default-free bond given the following yields of default-free zero-coupon bonds (spot
What is the price of a 4-year, 12% coupon (paid annually), $1,000 par value default-free bond given the following yields of default-free zero-coupon bonds (spot rates)? 1-Year: 5%, 2-year: 6%, 3-year:7%, 4-year: 8%.
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