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Please show work Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.94625 (1-year), 0.88966 (2-year), 0.83300 (3-year). Compute the 3-year

Please show work

Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.94625 (1-year), 0.88966 (2-year), 0.83300 (3-year). Compute the 3-year effective annual zero-coupon bond yield.

Selected Answer:	b. 20.05%
Answers:	a. 6.28%
	b. 20.05%
	c. 6.80%
	d. 13.60%
	e. 6.14%

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