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Consider two zero coupon bonds, both with face value of $1,000. One matures in 6 months and the other in 18 months. Suppose that the
Consider two zero coupon bonds, both with face value of $1,000. One matures in 6 months and the other in 18 months. Suppose that the discount rate (YTM) on the bond is 6% (treat this as an APR using semiannual compounding). What are the corresponding prices for the two zero coupon bonds?
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