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6. A 1-year zero coupon bond is priced at $947.87, while a 2-year zero coupon bond is priced at $881.66. Derive the 1-year and 2-year
6.
A 1-year zero coupon bond is priced at $947.87, while a 2-year zero coupon bond is priced at $881.66. Derive the 1-year and 2-year spot rate y1 and y2.
a.
5.5% and 6.5% respectively
b.
2.6% and 6.5% respectively
c.
5.5% and 12.0% respectively
d.
6.0% and 7.0% respectively
e.
Indeterminant from the information provided
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