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Consider a term structure of interest given by () = 2 + 3 + 1, where T is the maturity of capital, while r(T) is

Consider a term structure of interest given by () = 2 + 3 + 1, where T is the maturity of capital, while r(T) is the real cost of capital with the maturity of T years. What should be the market price of a 2-year bond with a coupon rate of 3%, paid semi-annually. Estimate the bonds yield to maturity, current yield and par yield. What is the bonds duration?

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