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The US Government Has a 3-Year 5% Coupon Bond with a Face

Question 31

Multiple Choice

The US Government has a 3-year 5% coupon bond with a face value of $1,000.The bond pays annual coupons and the first coupon is due in one year.Using the data on zero coupon US Government bond yields in the table,below,what is the price of the coupon bond?
The US Government has a 3-year 5% coupon bond with a face value of $1,000.The bond pays annual coupons and the first coupon is due in one year.Using the data on zero coupon US Government bond yields in the table,below,what is the price of the coupon bond? A) $1,010 B) $1,020 C) $1,030 D) $1,000 E) $1,040


A) $1,010
B) $1,020
C) $1,030
D) $1,000
E) $1,040

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