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Please note that the following spot rates are commonly used in Problem 1 8. Given Treasury spot rates as following: Maturity Zero Rates (%) 0.5

Please note that the following spot rates are commonly used in Problem 1 8.

Given Treasury spot rates as following:

Maturity

Zero Rates (%)

0.5

4.45

1.0

5.45

1.5

5.54

2.0

6.45

what is the price of a semi-annually compounded Treasury STRIPS with 6-month maturity and $1 face value ? (Enter your answer as a decimal rounded to 4 decimal places)

5.Use the same data given in the problem 1 and calculate the price of a semi-annually compounded Treasury bond with 2-year maturity, 4% coupon rate and $1 face value. (Enter your answer as a decimal rounded to 4 decimal places)

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