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8. You buy a two year zero coupon bond. The price is 98. It pays 100. You have a two year 10% coupon bond with

8. You buy a two year zero coupon bond. The price is 98. It pays 100. You have a two year 10% coupon bond with face value 100. The spot rate for year 1 is 5%. What is the price of the 2 year coupon bond?

9. What is the yield to maturity for the two bonds from the previous exercise?

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