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d. 02. 5. Use the following three bonds. Bond (par $1.000) Maturity (year) Annual coupon Price Bond A $40 $980 Bond B 2 $70 $965

d. 02. 5. Use the following three bonds. Bond (par $1.000) Maturity (year) Annual coupon Price Bond A $40 $980 Bond B 2 $70 $965 Bond 3 $90 $940 Find the 3-year future interest rate assuming that all coupons are paid annually. a. 9.12% b. 7.08% c. 11.82% d. 13.96%

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