Consider a 3% coupon Treasury bond with exactly one year to maturity and a facevalue of $1,000.
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Consider a 3% coupon Treasury bond with exactly one year to maturity and a facevalue of $1,000. Coupons are paid semi-annually. The 1-year rate on the yield curve is quoted as 2% APR, compounded semi-annually, and the price for a 6-month, $200 STRIP is $198.What is the price of the bond?
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