Question: Problem 2 [2pts) Suppose the current spot rates are: Spot rates rate Time to maturity (years) 10.25 1.6% 0.25 2.0% 0.5 0.75 2.4% 0.75 2.8%

Problem 2 [2pts) Suppose the current spot rates are: Spot rates rate Time to maturity (years) 10.25 1.6% 0.25 2.0% 0.5 0.75 2.4% 0.75 2.8% 1 10.5 What is the price of the 1-year coupon bond paying a coupon rate of 8% per year quarterly and a face value of $100

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