A 10-year, 8% coupon bond currently sells for $90. A 10-year, 4% coupon bond currently sells for

Question:

A 10-year, 8% bond currently sells for $90. A 10-year, 4% bond currently sells for $80. What is the 10-year zero rate? (Hint: Consider taking a long position in two of the 4% bonds and a short position in one of the 8% bonds.)
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...