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Given T bill prices, one can infer the term structure of interest rates. For example, given the one-year T-Bill price of $98 (face value 100),

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Given T bill prices, one can infer the term structure of interest rates. For example, given the one-year T-Bill price of $98 (face value 100), what is the implied r(0,1)? Remember that r(0,1) is the notation for continuously compounded interest rate with maturity date in one year. 0.0098 0.0200 0.0202 0.0204

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