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Consider the following zero-coupon yields on default free securities:r1= 5.80%,r2= 5.50%,r3= 5.20%,r4= 5.00%,r5= 4.80%, wherernrepresents the zero-coupon yield for maturity. The yield to maturity (YTM)
Consider the following zero-coupon yields on default free securities:r1= 5.80%,r2= 5.50%,r3= 5.20%,r4= 5.00%,r5= 4.80%, wherernrepresents the zero-coupon yield for maturity. The yield to maturity (YTM) of a 3 year default free security with a face value of $1,000 and an annual coupon rate of 6% is closest to:
Select one:
a.5.7%
b.5.8%
c.5.2%
d.5.5%
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