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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
- 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 | Spot Rate | |
1 year | 3.50% | |
2 years | 4.50% | |
3 years | 5.10% | |
4 years | 5.70% | |
5 years | 6.10% |
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