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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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