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7. The current term-structure has the following nominal annual spot rates () a 6 months spot rate is 8%. R 1-year spot rate is 10%.

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7. The current term-structure has the following nominal annual spot rates () a 6 months spot rate is 8%. R 1-year spot rate is 10%. 1/2 = 140 spot rate is x7. a) Based 12/2/20 on the term structure, a year bond with (nominal annual) coupon rate of 10% has YTM of 11%. Find x

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