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Bonus Problem 1 (Optional, 25 marks) We consider a nT-years coupon bond. It has face value F and it pays coupons at times T, 2T,...,

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Bonus Problem 1 (Optional, 25 marks) We consider a nT-years coupon bond. It has face value F and it pays coupons at times T, 2T,..., nt respectively. Suppose that the current term structure of interest rate is inverted, prove that the annual effective yield rate of the bond satisfy sonT)

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