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(1)What is the spot rate? (2)Calculate the spot rates using the following zero coupon bonds. Assume semiannual compounding. Maturity Par value Price 0.5 year $1000

(1)What is the spot rate?

(2)Calculate the spot rates using the following zero coupon bonds. Assume semiannual compounding.

Maturity Par value Price
0.5 year $1000 $950
1 year $1000 $970
1.5 years $1000 $980
2 years $1000 $900

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