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Compute yield-to-maturity for the following zero-coupon bonds: 1-year zero-coupon bond, traded currently at 980 dollars 2-years zero-coupon bond, traded currently at 920 dollars 3-years zero-coupon
Compute yield-to-maturity for the following zero-coupon bonds:
- 1-year zero-coupon bond, traded currently at 980 dollars
- 2-years zero-coupon bond, traded currently at 920 dollars
- 3-years zero-coupon bond, traded currently at 840 dollars
Assume that all 3 bonds have the same nominal: 1000 dollars.
Using YTMs calculated plot the yield curve.
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