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Consider the following zero-coupon yield curve for U.S. Treasury: 1. Maturity (years) 1 2 3 4 5 Zero-Coupon YTM 3.25% 3.50% 3.90% 4.25% 4.40% a.
Consider the following zero-coupon yield curve for U.S. Treasury: 1. Maturity (years) 1 2 3 4 5 Zero-Coupon YTM 3.25% 3.50% 3.90% 4.25% 4.40% a. What is the price of a five-year default-free security with a face value of $1000 and an annual coupon rate of 5%? b. What is the YTM of the bond
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