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All bonds have a face value ( principal ) of $ 1 0 0 . The prices of six - month and one - year

All bonds have a face value(principal) of $100. The prices of six-month and one-year Treasury bills are $97.0 and $94.0. A 1.5-year bond that will pay coupons of $3 every six months currently sells for $99.54. Calculate the 1.5-year zero rate and the yield-to-maturity for the 1.5 year bond.

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