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 3.51% If interest rate remains at 3.51% for the life of the bond (i.e., 3.51 years), what is the price of Bond E in year 5? Question 7 1 pts Term (years) Today's Rate 1 2.24% 2 2.4% 3 2.47% Based on the expectations hypothesis, what does the market expect the 2 year rate in 1 years to be? State your answer as a percentage to 2 decimal places (e.g., 4.39)
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