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If a 2-year bond is yielding 4.25% and selling at par, what is the 1-year rate next year if the bond price falls to $99.00:

If a 2-year bond is yielding 4.25% and selling at par, what is the 1-year rate next year if the bond price falls to $99.00: (a) 5.30%; (b) 4.25%; (c) 3.50%; (d) 4.85%

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