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Answer is C, but please show work and also if possible through TVM 7. The annual par-coupon rate on a 1-year treasury bond is 5.5%.

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Answer is C, but please show work and also if possible through TVM

7. The annual par-coupon rate on a 1-year treasury bond is 5.5%. The par-coupon on a 2-year treasury bond is 5.8%. What is the 1-year effective yield on a 2-year zero coupon bond? (a) 5.62% (b) 5.70% (c) 5.81%

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