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MBA, PHD
Phoniex
Jul-2007 - Jun-2012
Corportae Manager
ChevronTexaco Corporation
Feb-2009 - Nov-2016
Question description
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The Federal Government 2 year coupon bond has a face value of $1000 and pays annual coupons of $33. The next coupon is due in one year. Currently the one and two year spot rates on federal Government zero coupon bonds are 4% and 4.5%. What is the correct price for the coupon bond at time zero (Immediately)?
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