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Suppose a two-year pure discount bond (zero-coupon bond) is trading at 890, and a two-year...

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Accounting

Suppose a two-year pure discount bond (zero-coupon bond) is trading at 890, and a two-year coupon bond with annual coupon payments at a coupon rate of 6 percent is trading at par. Assuming no market frictions, what should be the price of a one-year pure discount bond (zero-coupon bond)? All bonds are riskless and have a face value of 1000.

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