What is best estimate of the price of the bond

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Consider a two year coupon bond issued today with a face value of $1,0{K} and a 125% coupon rate. Suppose that yields on zero coupon bonds with terms one year are 6.25% and two years are 6.50%. What is your best estimate of the price of the bond next year after the first coupon? Round your final answer to 2 decimal places

Reference no: EM133000007

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