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(b) What is the yield to maturity of a 3-year zero coupon bond? (4 marks) Suppose that all investors expect the following pattern of interest

image text in transcribed (b) What is the yield to maturity of a 3-year zero coupon bond? (4 marks)

Suppose that all investors expect the following pattern of interest rates: Year Forward Interest Rate (spot, today) 5% 17% 9% 10% Assuming the par value of bonds is $1000

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