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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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