Question: Question 23: Consider a 2-year coupon bond with a face value of $1 Million and an 8% annual coupon rate. What is the current price

Question 23:

Consider a 2-year coupon bond with a face value of $1 Million and an 8% annual coupon rate.

What is the current price of this bond if the 1-year discount rate is 5% and the 2-year discount rate is 7% (units: millions of dollars)?

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