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You have estimated spot rates as follows: r 1 = 1.5%, r 2 = 1.8%, r 3 = 2.1%, r 4 = 2.3%, r 5

You have estimated spot rates as follows:

r1 = 1.5%, r2 = 1.8%, r3 = 2.1%, r4 = 2.3%, r5 = 3.5%, r6 = 4.5%.

Calculate the price of bond with an annual coupon rate of 4.5% and six years to maturity. Face value of the bond is $1000.

$1011.5

$1050.5

$1000

$1032.5

$1025.5

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