Question: Problem 7.LO4.16 Question Help AU.S. Government 2-year T-Note has a face value of $1,000 and pays annual coupons of $85. The first coupon is

Problem 7.LO4.16 Question Help AU.S. Government 2-year T-Note has a face value

Problem 7.LO4.16 Question Help AU.S. Government 2-year T-Note has a face value of $1,000 and pays annual coupons of $85. The first coupon is due in one year. What is the correct price for the coupon bond today? Use the term structure of interest rates shown below. Term 1-year 2-years Spot Rate 6.0% 7.0% The correct price for the coupon bond today is $ (Round to the nearest cent.)

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