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Suppose a One-Year Zero-Coupon Bond Is Sold at $980,a Two-Year

Question 70

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Suppose a one-year zero-coupon bond is sold at $980,a two-year zero-coupon bond is sold at $950,and a three-year zero-coupon bond is sold at $920.What is the price of a 3-year 5% annual coupon bond? What is its YTM?

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P=50*0.980+50*0.950+1,050*0.92...

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