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Question: Assuming the market is arbitrage-free, if a three-month zero-coupon bond yields 2.25%, a six-month zero-coupon bond yields 2.45%, a nine-month zero-coupon bond yields 2.95%, and a one-year zero-coupon bond yields 3.35%, what should be the price of a one-year $1,000 5% par-value bond with quarterly coupons? (Round your answer to the nearest cent.)

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