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Problem 1. Let h=1/12. (a). Invest $100 in 6-month zero-coupon bonds trading at B(0,6)=0.93 dollars. Find the implied interest rate y(0) (b). After 6 months,

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Problem 1. Let h=1/12. (a). Invest $100 in 6-month zero-coupon bonds trading at B(0,6)=0.93 dollars. Find the implied interest rate y(0) (b). After 6 months, reinvest the proceeds in bonds of the same kind, now trading at B(6,12)=0.94 Find the implied interest rate (6). Problem 1. Let h=1/12. (a). Invest $100 in 6-month zero-coupon bonds trading at B(0,6)=0.93 dollars. Find the implied interest rate y(0) (b). After 6 months, reinvest the proceeds in bonds of the same kind, now trading at B(6,12)=0.94 Find the implied interest rate (6)

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