Question: Consider a three - year coupon bond with a face value of $ 1 0 0 0 and a coupon rate of 5 % .

  Consider a three - year coupon bond with a face value of $1000 and a coupon rate of 5%. Assume the interest rates follow the path from Node 0 to Node 2 to Node 5 so that one - year interest rates are 4%,3%, and 2%. What is the price or present value of the bond? 

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