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a. What is the present value of a bond with four years to maturity and a 10% coupon rate (pay coupon annually)? (5%) b. What

a. What is the present value of a bond with four years to maturity and a 10% coupon rate (pay coupon annually)? (5%)

b. What is the yield to maturity of the bond? (5%)

c. What is the short rate in each year? (15%)

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