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Below is a list of prices for zero - coupon bonds of various maturities. a . A 5 . 6 % coupon $ 1 ,
Below is a list of prices for zerocoupon bonds of various maturities.
a A coupon $ par bond pays an annual coupon and will mature in years. What should the yield to maturity on the bond
beRound your answer to decimal places.
Yield to maturity
b If at the end of the first year the yield curve flattens out at what will be the year holdingperiod return on the coupon bond?
Round your answer to decimal places.
Holdingperiod return
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