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Find zero-coupon treasury security

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Assume that one-year rates expected over the next five years are 5.0%, 5.5%, 6.0%, 5.5%, and 5.0% respectively, but that investors require an additional annual maturity risk premium of 0.60% to hold a 5-year security. How much should you be willing to pay today for a zero-coupon treasury security that matures for $10,000 in five years? (note:geometric values, tour answer will be $ 0.23 higher)

Reference no: EM132634793

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