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Problem set 2 QI Consider a zero-coupon bond with a face value of $100, a time-to-maturity of one year and a price of $105. What
Problem set 2 QI Consider a zero-coupon bond with a face value of $100, a time-to-maturity of one year and a price of $105. What is its yield-to-maturity? Q2 Consider a coupon bond with a face value of $100, a coupon rate of 2%, a time-to- maturity of two years and a price of $85. What is its yield-to-maturity? Hint: Solve numerically using a scientific calculator or Excel
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