Question: Show work, please. No Excel 1) Suppose the 1 year, 2 year, 3 year, and 4 year spot rates given by 6%,7%,7.5%, and 8% respectively.
Show work, please. No Excel

1) Suppose the 1 year, 2 year, 3 year, and 4 year spot rates given by 6%,7%,7.5%, and 8% respectively. By how much is a 4-year, 7.5% coupon bond with anmual payments, and face value of $1000 mispriced, if its market price is $990
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