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Suppose That All Investors Expect That Interest Rates for the 4

Question 3

Multiple Choice

Suppose that all investors expect that interest rates for the 4 years will be as follows: Suppose that all investors expect that interest rates for the 4 years will be as follows: What is the price of a 2-year maturity bond with a 5% coupon rate paid annually (Par value = $1,000.) A) $1,092.97 B) $1,054.24 C) $1,028.51 D) $1,073.34 E) None of the options What is the price of a 2-year maturity bond with a 5% coupon rate paid annually (Par value = $1,000.)


A) $1,092.97
B) $1,054.24
C) $1,028.51
D) $1,073.34
E) None of the options

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