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2. Consider two 0-coupon bonds ($1,000 par) with the following maturities (today's date is April 2019)? Maturity 1 year (Matures (April 2020) 2 years 3

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2. Consider two 0-coupon bonds ($1,000 par) with the following maturities (today's date is April 2019)? Maturity 1 year (Matures (April 2020) 2 years 3 years a) Draw the yield curve (complete curve assuming 30 year maturity is.034). Yield .034 Yield (annual) .01 018 .022 Plot points. .01 I* 1 2 30 Maturity b) i) What is the price of a 1-year, 0-coupon bond today? ii) What is the expected price of a 1-year, 0-coupon bond that will be issued one year from today (April 2020 and mature in April 2021)? iii) Compute the YTM of a 2-year 5% coupon bond

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