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Consider 2 securities with face value equal to 100. One year pure discount bond selling at $95. One two year 8% discount bond selling at

Consider 2 securities with face value equal to 100. One year pure discount bond selling at $95. One two year 8% discount bond selling at $96.5. What is the two year zero coupon rate R(0,2)? A) 10.02% B) 8.7% C) 10.22% D) 5.26%

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