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Please answer the entire question. I have to repost this question becasue the entire question was not answered completely. Thanks 8. (24 points) 20-year riskless

Please answer the entire question. I have to repost this question becasue the entire question was not answered completely. Thanks

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8. (24 points) 20-year riskless zero-coupon bonds (say, discount Treasury bonds) are pure currently yielding 9% to maturity and similar five-year bonds are now yielding 10% to maturity. 1) (5 points) What is the implied forward rate on a 15-year bond which will start at end of the year 5? 10 og l+ F155 lt D-10 ths this s the liquidity premium theory of the term structure, what is the expected rate on a 15-year bond at the end of year 5? FR

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