18. A 6% six-year bond yields 12% and a 10% six-year bond yields 8%. Calculate the six-year...
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18. A 6% six-year bond yields 12% and a 10% six-year bond yields 8%. Calculate the six-year spot rate. Assume annual coupon payments. (Hint: What would be your cash flows if you bought 1.2 10% bonds?)
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