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Consider the following ZCB (zero coupon bond) with a face value of 1000, matures in 1 year, and has a market value of 889.2858, and
Consider the following ZCB (zero coupon bond) with a face value of 1000, matures in 1 year, and has a market value of 889.2858, and assume that the current rate for a 1-year treasury is 1.7083, what is the risk premium for that ZCB? (hint solve for YTM using the ZCB formula and then consider the treasury rate)
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