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For the questions 7-8 use the following information: a 1-year 6% bond, with $100 par value, 6% yield to maturity and semiannual coupon payments. All

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For the questions 7-8 use the following information: a 1-year 6% bond, with $100 par value, 6% yield to maturity and semiannual coupon payments. All rates are with continuous compounding. Assuming the relevant annualized zero rates are 5% (6-month) and 7% (1-year), what should be the value of the bond? 7, 8. Assume that the annualized 6-month zero rate is 5%, and that the bond price is $100. What is the 1-year zero

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