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1a) Today, a 1-year bond has an annualized rate of return of 5% per year. A 2-year bond has an annualized rate of return of

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1a) Today, a 1-year bond has an annualized rate of return of 5% per year. A 2-year bond has an annualized rate of return of 8% per year. A 3-year bond has an annualized rate of return of 10% per year. What is the forward rate for a 1-year bond in the third year? b) If interest rates decrease by 15 basis points (original interest rate is 8%), what is the % price change for a 30 year zero-coupon bond with a $100 face value? c) If interest rates increase by 150 basis points (original interest rate is 8%), what is the % price change for a 1 year zero-coupon bond with a $100 face value

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