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What is the correct price for the coupon bond today

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Reference no: EM132867620

Problem - A U.S. Government 2-year T-Note has a face value of $1,000 and pays annual coupons of $95. The first coupon is due in one year. What is the correct price for the coupon bond today? Use the term structure of interest rates shown below.

Term

Spot Rate

1-year

4.5%

2-years

1.0%

Reference no: EM132867620

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