Question: The one year spot interest rate is 2% and the two year spot rate is 4%. What is the price of a two-year bond

The one year spot interest rate is ( 2 % ) and the two year spot rate is ( 4 % ). What is the price of a two-year bond

The one year spot interest rate is 2% and the two year spot rate is 4%. What is the price of a two-year bond with face value 1,000 and coupon rate 5%? Assume that coupons are paid annually. a. 1020.78 b. 1014.90 c. 1019.80 d. 1058.63

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