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A 50-year 8% coupon bond currently sells for $110,000. A 50-year 2% coupon bond with exactly the same coupon dates and maturity currently sells for
A 50-year 8% coupon bond currently sells for $110,000. A 50-year 2% coupon bond with exactly the same coupon dates and maturity currently sells for $30,000. Both bonds have $100,000 as the principal at maturity. Coupon is paid once a year and use continuous compounding. What is the 50-year zero rate?
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