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1- Suppose that we have the following data from the bond market: Bond Time to Coupon per Bond Principal Maturity (yrs) year ($) price (S)

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1- Suppose that we have the following data from the bond market: Bond Time to Coupon per Bond Principal Maturity (yrs) year ($) price (S) 100 0.50 0 90 1.00 8 96 100 1.50 10 94 100 *Coupons are paid semiannualy. Calculate the 6 month, 1 year and 1.5 year zero rates using the data given above. (20 pts)

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