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b) Given the following table, find the spot rates for 6 months, 1 year, 1.5 year and 2 year periods: Explain your workings. (8 marks)

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b) Given the following table, find the spot rates for 6 months, 1 year, 1.5 year and 2 year periods: Explain your workings. (8 marks) c) Use the spot rate curve from b) to price a 2-year 5% semi-annual coupon bond. Would you buy that bond if its market price is 95? (4 marks)

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