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A 9-year 8% coupon bond currently sells for $919. A 9-year 4% coupon bond currently sells for $780. What is the 9-year zero rate with
A 9-year 8% coupon bond currently sells for $919. A 9-year 4% coupon bond currently sells for $780. What is the 9-year zero rate with ANNUAL compounding? (Hint: Consider taking a long position in two of the 4% coupon bonds and a short position in one of the 8% coupon bonds. Both bonds have the same issuer and have a Facevalue of $1000) NOTE - Final answer should be expressed as a % correct 2 d.p. (for example enter 1.9543% as 1.95 without a % sign. Answers within +/- 0.02 are considered correct)
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