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Please answer all of the following questions accorting to the vart guven a) Calculate the forward rate f2,4,(20pts) b) Calculate short rate r3, ( 20
Please answer all of the following questions accorting to the vart guven a) Calculate the forward rate f2,4,(20pts) b) Calculate short rate r3, ( 20 pts) d) A 5-year bond has a face value of 1.0005 whose coupons are paid amnually. If the price of this c) Do these rates follow inverted yield cunve? Yes /No(5,pN) bond is 850b, calculate the coupon rate of this bond. (55 prs)
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