Consider the market rates for the maturities 1, 2, and 3 years respectively in the table below. What is the price of a 3-year bond with annual payments, coupon rate equal to 9.25% and face value equal to $82,000. (Answer with two decimal accuracy)
t | R(0,t) |
1 | 1.05 |
2 | 3.75 |
3 | 5.20 |
Note - As no method was mentioned in the question ,I have solved it with excel function.
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