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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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