13. At your favorite bond store, Bonds-R-Us, you see the follcnvirg prices: Ore year S zero selling...
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13. At your favorite bond store, Bonds-R-Us, you see the follcnvirg prices:
Ore •year S zero selling for W). 19 Three-year coupon t»nd selling for $ 1000 coupon S par bond for Assume that the pure expectations theory for the term structure interest rates holds. no liquidity premium exists. and the bonds are equally risky.
What is the implied one-year rate two years from now?
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Related Book For 
Financial Markets and Institutions
ISBN: 978-0321280299
5th edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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