Question: 4 . The yield to maturity on one - year zero - coupon bonds is currently 7 percent; the YTM on two - year zeroes

4. The yield to maturity on one-year zero-coupon bonds is currently 7 percent; the YTM on two-year zeroes is 8 percent. The federal government plans to issue a two-year-maturity coupon bond, paying coupons once per year with a coupon rate of 9 percent. The face value of the bond is $100. At what price will the bond sell?

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