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29. Suppose the term structure of risk-free interest rates is as shown below: Term 1 year 2 years 3 years 5 years 7 years 10

29.

Suppose the term structure of risk-free interest rates is as shown below:

Term

1 year

2 years

3 years

5 years

7 years

10 years

20 years

Rate (EAR, %)

1.99

2.41

2.74

3.32

3.76

4.13

4.93

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