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8) You know the rates over the next 2 years are r= 5.0% and f2= 5.8% (the subscript indicates the year). What is the YTM

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8) You know the rates over the next 2 years are r= 5.0% and f2= 5.8% (the subscript indicates the year). What is the YTM of a two year government bond which pays a 10% annual coupon and has a $1000 face value? a. 5.38% b. 5.62% c. 5.80% d. None of the above

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