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3. You are given the cash inflow at the end of each year from the table for Bond A, B and C. Calculate the 1-year,
3. You are given the cash inflow at the end of each year from the table for Bond A, B and C. Calculate the 1-year, 2-year and 3-year spot rates by assuming annual compounding, and the prices of bond A, B and Care $100, $98 and $96 at the beginning of year 1. Bond Year 1 Year 2 Year 3 After year 3 A 105 0 0 0 B 4 104 0 0 3 3 103 0
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