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2. You observe the information of bonds as below, all the bonds maturing from 1.5 years on are selling at par, (a) Calculate the missing

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2. You observe the information of bonds as below, all the bonds maturing from 1.5 years on are selling at par, (a) Calculate the missing spot rates for the question marks in the table (8 marks) (b) What should the price of a 6% three-year bond be? (8 marks) (c) What is the six-month forward rate starting in the second year? (8 marks)

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