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3. An analyst observes a fiat yield curve. What are the markets' expectations about future interest rates based on unbiased expectations? (5 points) 4. How

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3. An analyst observes a fiat yield curve. What are the markets' expectations about future interest rates based on unbiased expectations? (5 points) 4. How does a bond's coupon rate affect its (1) interest rate risk and (2) duration? (6 points) 5. What is the forward rate represented by the following two spot rates? (6 points) October, 2028 October, 2029 Yield Yield 4 10% 4.35%

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