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a) Draw the yield curve. b) Compute the 9n-year compounded holding rates of return from now to year n. c) Compute the 9 l-year forward

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a) Draw the yield curve. b) Compute the 9n-year compounded holding rates of return from now to year n. c) Compute the 9 l-year forward rates of return. A: Use annualized interested rates to draw the yield curve. Read the table below until year 9 . Ignore numbers for years 10 through 12 . If the annualized rate of return on insured tax-exempt municipal bonds will be 3% per annum and the inflation rate remains at 2% per annum, then what will be their real rate of return over 30 years? a) Draw the yield curve. b) Compute the 9n-year compounded holding rates of return from now to year n. c) Compute the 9 l-year forward rates of return. A: Use annualized interested rates to draw the yield curve. Read the table below until year 9 . Ignore numbers for years 10 through 12 . If the annualized rate of return on insured tax-exempt municipal bonds will be 3% per annum and the inflation rate remains at 2% per annum, then what will be their real rate of return over 30 years

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