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3. Suppose that the forward rate function is r(t)=0.015+0.005t,t0. (a) (5pts) What is the two-year continuously compounded spot rate? (b) (5pts) What is the price

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3. Suppose that the forward rate function is r(t)=0.015+0.005t,t0. (a) (5pts) What is the two-year continuously compounded spot rate? (b) (5pts) What is the price of a two-year coupon bond with a face value of (PAR) \$3,000 and two annual coupon payments of $150 each

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