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5. The current (short-run) Yield Curve is as follows: Maturity (years1 Zero coupon YTM 4 4.70% 2 3 4.50% 4.00% 4.30% 4.80% a. What is the price today of a two year default-free bond with a face value of $1000 and an annual coupon rate of 6%. Does this bond trade at a discount, at par, or at a premium? b. Consider a four year, default-free bond with annual coupon payments and a face value of $1000 that is issued at par. What is the coupon rate of this bond? c. What is the price of a three year, default-free bond with a face value of $1000 and an annual coupon rate of 4.62 What is the yield to maturity?

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