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A 10-year, 0.11% coupon bond currently sells for $95. A 10-year, 0.07% coupon bond currently sells for $71. What is the 10-year zero rate? (
A 10-year, 0.11% coupon bond currently sells for $95. A 10-year, 0.07% coupon bond currently sells for $71. What is the 10-year zero rate? (Hint: Consider taking a long position in two of the 0.07% coupon bonds and a short position in one of the 0.11% coupon bonds.)
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