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The term structure of spot interest rates is given in the table below

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The term structure of spot interest rates is given in the table below. Term Spot interest rate 1.5% 3% 5% For a three-year bond with par value 1000 and annual coupon rate 4%, find: a) The price of the bond. b) Find the annual effective yield rate i for the bond if it is sold at the price in (a). (You may wish to write the equation of value which could earn partial credit if your result is wrong.) 1 year 2 year 3 year