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Consider two annual coupon bonds, each with two years to maturity. Bond A has a 7% coupon and a price of $1,000.62. Bond B has

Consider two annual coupon bonds, each with two years to maturity. Bond A has a 7% coupon and a price

of $1,000.62. Bond B has a 10% coupon and sells for $1,055.12. Find the two one-period forward rates that

must hold for these bonds.

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