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Consider the par yield curve for the U.S. Treasury securities given in the table below (only the first 3 years of the curve are provided).

Consider the par yield curve for the U.S. Treasury securities given in the table below (only the first 3 years of the curve are provided). Calculate the missing spot rates indicated by ???? using bootstrapping and add them to the table. Show all work for calculations.

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Year 0.5 1.0 1.5 Yield to Maturity (%) 5.25 5.50 5.75 6.00 6.25 6.50 Spot Rate (%) 5.25 5.50 ???? ???? ???? ???? 2.0 2.5 3.0 Year 0.5 1.0 1.5 Yield to Maturity (%) 5.25 5.50 5.75 6.00 6.25 6.50 Spot Rate (%) 5.25 5.50 ???? ???? ???? ???? 2.0 2.5 3.0

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