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9. YIELD CURVE FOR ZERO-COUPON BONDS RATED AA laturityYTMMaturity1year8.00%7year2year8.11%8year3year8.20%9year4year8.50810year5year8.75811year6year8.85812yearYTMMaturityYTM9.15%13year10.45%9.25%14year10.65%9.35%15year10.75%9.47%16year10.95%9.52817year11.00%9.77%18year11.25% Assume that there are no liquidity premiums. To the nearest basis point, what is the expected
9. YIELD CURVE FOR ZERO-COUPON BONDS RATED AA laturityYTMMaturity1year8.00%7year2year8.11%8year3year8.20%9year4year8.50810year5year8.75811year6year8.85812yearYTMMaturityYTM9.15%13year10.45%9.25%14year10.65%9.35%15year10.75%9.47%16year10.95%9.52817year11.00%9.77%18year11.25% Assume that there are no liquidity premiums. To the nearest basis point, what is the expected interest rate on a four-year maturity, AA zero-coupon bond purchased six years from today? (Show your calculation step by step, it matters and earns points for you.). A) 10.41% B) 10.05% C) 9.16% D) 10.56% E) 9.96%
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