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Find the 2year discount factor: A 1-year Tbill is priced at $0.98 and 2-year coupon bond is priced at $102 with a 2% coupon that

Find the 2year discount factor:

A 1-year Tbill is priced at $0.98 and 2-year coupon bond is priced at $102 with a 2% coupon that pays ANNUALLY

  • Find the 2-year discount factor for the purpose of building a spot curve.
  • Calcuate the spot rates for each

Find the 2year discount factor:
A 1-year Tbill is priced at $0.98 and 2-year coupon bond is priced at $102 with a 2% coupon that pays ANNUALLY
* Find the 2-year discount factor for the purpose of building a spot curve.
* Calcuate the spot rates for each

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