Question: A Treasury bond with two yeas until maturity has a par value of $100 and pays semiannual coupons at a rate of 4% per annum.

A Treasury bond with two yeas until maturity has a par value of $100 and pays semiannual coupons at a rate of 4% per annum. Given the zero rates below, determine the market price of the bond.

Par	Maturity (years)	Annual Coupon	Price
100	0.5	0	98
100	1	4	99

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