Calculate the value of two-year bond with face value

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Reference no: EM131856084

The zero rates are given in the following table. Please calculate the value of a 2-year bond with a face value of $100 and 8% annual coupon rate (coupons are paid semiannually).

Maturity (years) Zero rate (continuous compounding)

0.5 3%

1.0 3.25%

1.5 3.50%

2.0 4.0%

Reference no: EM131856084

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