Question: Bond E has the following features: Face value = $1,000, Coupon Rate = 6%, Maturity = 5 years, Yearly coupons The market interest rate is

Bond E has the following features:

Face value = $1,000, Coupon Rate = 6%,

Maturity = 5 years, Yearly coupons

The market interest rate is 3.05%

If interest rate remains at 3.05% for the life of the bond (i.e., 3.05 years), what is the price of Bond E in year 3?

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