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b. Compute the forward rates, prices of zero coupon bonds of corresponding maturities with face value $1000, and finally the par yields on the bonds,
b. Compute the forward rates, prices of zero coupon bonds of corresponding maturities with face value $1000, and finally the par yields on the bonds, assuming coupons are paid annually. Maturity 1 year 2 years 3 years 4 years 5 years Spot Rate 3.50% 4.50% 5.10% 5.70% 6.10%
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