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Intro Treasury spot interest rates are as follows: 2. 4 Maturity (years) 1 3 4 Spot rate 1.9% 2.8% 3.7% 4.5% Part 1 IB Attempt

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Intro Treasury spot interest rates are as follows: 2. 4 Maturity (years) 1 3 4 Spot rate 1.9% 2.8% 3.7% 4.5% Part 1 IB Attempt 2/10 for 9 pts. What is the fair price of a Treasury note with 2 years to maturity, a $1,000 face value, and a coupon rate of 4.8%, paid annually (in $)? 0+ decimals Submit IB Attempt 1/10 for 10 pts. Part 2 Suppose this Treasury note is currently priced in the market fair and square (no mispricing), what is the yield to maturity? 4+ decimals Submit

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