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Consider the market rates for the maturities 1, 2, and 3 years respectively in the table below. What is par rate of a 3-year bond
Consider the market rates for the maturities 1, 2, and 3 years respectively in the table below. What is par rate of a 3-year bond with annual payments. (Answer with two decimal accuracy)
t | R(0,t) |
1 | 2.00 |
2 | 4.00 |
3 | 6.00 |
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