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Consider a 2-year euro-denominated bond that has a current market price of 970, a face value of 1,000, and an annual coupon of 5%. Suppose

Consider a 2-year euro-denominated bond that has a current market price of 970, a face value of 1,000, and an annual coupon of 5%. Suppose the 1-year euro denominated spot interest rate is 5.5%. What is the 2-year euro-denominated spot interest rate?

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