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Obtain the zero rates in continuous compounding from the available bonds for the following maturities (10 points): 3 months - 6 months - 1
Obtain the zero rates in continuous compounding from the available bonds for the following maturities (10 points): 3 months - 6 months - 1 year - 1.5 years 2 years Bonds available: - - - 3-month zero coupon bond with principal of 100 and price of 98.5 6-month zero coupon bond with principal of 100 and price of 96.5 1-year zero coupon bond with principal of 100 and price of 92 1.5-year bond providing a 6% annual coupon paid semiannually on a principal of 200 and price 193 2-year bond providing a 8% annual coupon paid annually on a principal of 100 and price 97.5
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