Question

Consider the following prices of zero coupon bonds, each with a face value of $1,000, for...

Consider the following prices of zero coupon bonds, each with a face value of $1,000, for different maturities:

Maturity Price
1 962
2 925
3 889

Consider a bond with maturity of 3 years, a coupon rate of 5% and face value of $1,000. What is the price of this bond?

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