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1. The 0.5-year and 1-year risk free spot interest rates are 5% and 6% per year. Assume semi-annual compounding. Compute the 0.5- and 1-year zero

1. The 0.5-year and 1-year risk free spot interest rates are 5% and 6% per year. Assume semi-annual compounding. Compute the 0.5- and 1-year zero coupon bond prices that pays $1 face value at maturity.

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