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27. Currently, the term structure is as follows: One-year bonds yield 7%, two-year zero- coupon bonds yield 8%, three-year and longer maturity zero-coupon bonds all

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27. Currently, the term structure is as follows: One-year bonds yield 7%, two-year zero- coupon bonds yield 8%, three-year and longer maturity zero-coupon bonds all yield 9%. You are choosing between one-, two-, and three-year maturity bonds all paying annual coupons of 8%. Which bond will provide the highest rate of return if at year-end the yield curve will be flat at 9%? @LO 11-5)

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