Calculate the value of annual coupon bond

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Reference no: EM132199778

Question - Given the following spot rates:

Time-to-maturity

Spot rates

1 year

3%

2 years

4%

3 years

5%

Calculate the value of a 3-year, 5% annual coupon bond. Also, what would be the yield to maturity for this bond?

Reference no: EM132199778

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