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Problem 1. The current period is t. Consider these parts in a sequence. Round numbers till four digits after the dot (i.e., in percentages, this

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Problem 1. The current period is t. Consider these parts in a sequence. Round numbers till four digits after the dot (i.e., in percentages, this would be xx.xx%). (A) There is a bond A with a three-year time to maturity and face value of $100. The current price of this bond is $93.34. Find the yield to maturity. (B) There is another bond B with a two-year maturity and face value of $50. The current price of this bond is $47.13. Find the yield to maturity. (C) What interest rate does the market expect between years +2 and 1+3? (D) The same bond A is expected to cost $97.11 at time t +1. Find the interest rate that the market expects between years t +1 and t +2. (E) What is the current interest rate, if? (F) Plot the yield curve. (F) - 1 Problem 1. The current period is .. Consider these parts in a sequence. Round numbers till four digits after the dot (i.e., in percentages, this would be xx.xx%). (A) There is a bond A with a three-year time to maturity and face value of $100. The current price of this bond is $93.34. Find the yield to maturity. YTM (B) There is another bond B with a two-year maturity and face value of $50. The current price of this bond is $47.13. Find the yield to maturity. (C) What interest rate does the market expect between years 1+2 and 1+3? (D) The same bond A is expected to cost $97.11 at time t+1. Find the interest rate that the market expects between years 1+1 and 1+2. (E) What is the current interest rate, if? (F) Plot the yield curve

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