How to pays the coupons at the rate per year


What's the present value of a $1,000 bond that matures in 2 years and pays coupons at the rate of 2% per eyar> ( one coupon every 6 months) Assume that the risk free interest rate is 3% throughout the 3 year period. Show your work and calculate the PV.

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Finance Basics: How to pays the coupons at the rate per year
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