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You invest in a two year bond with a principal of $1,000 with a coupon rate of 4% with interest paid annually. The zero rates,
You invest in a two year bond with a principal of $1,000 with a coupon rate of 4% with interest paid annually. The zero rates, with continuous compounding, are 6% and 6.2%, respectively in years 1 and 2. Calculate the theoretical price of this bond.
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