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The risk-free rate is 2%. The current price of a $4,000 face value 1-year zero-coupon...

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Finance

The risk-free rate is 2%. The current price of a $4,000 face value 1-year zero-coupon bond is $3,760. Someone tells you they would only buy the bond if the price was $3,500. What does this imply about their risk premium relative to the market? What is their risk premium?

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