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Assume the Spot Price of Gold Is $745 Per Ounce

question 3

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Assume the spot price of gold is $745 per ounce and the 2-year forward price is $773.Annualized 1-year and 2-year forward interest rates are 5.0% and 5.2%,respectively.For a commodity-linked note to sell at par,what is the annual coupon?


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