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A 5 - year 1 4 % coupon bond currently sells for $ 1 1 4 . 4 6 2 2 . A 5 -

A 5-year 14% coupon bond currently sells for $114.4622. A 5-year 7% coupon bond currently sells for $80.0755. What is the 5-year spot rate? (Hint: Diagram out the cash flows of the bonds and go long one 14% bond and short two 7% bonds.)

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