What should be the price of par-value bond

Reference no: EM131939852

Question: Assuming the market is arbitrage-free, if a six-month pure discount bond yields 1.9%, a one-year pure discount bond yields 2.3%, an eighteen-month pure discount bond yields 2.65%, and a two-year discount bond yields 3.05%, what should be the price of a two-year $1,000 6% par-value bond with semiannual coupons?

Reference no: EM131939852

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