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QUES 3. Suppose you observe that the YTM on a 1-year zero-coupon bond is 5%, and the YTM on a 2-year zero-coupon bond is 6%.

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QUES 3. Suppose you observe that the YTM on a 1-year zero-coupon bond is 5%, and the YTM on a 2-year zero-coupon bond is 6%. The YTM on a 2-year annual coupon bond with a 12% coupon rate is 5.8%. Assume all three bonds are riskless. If you were to repackage the 2-year coupon bond as two zero-coupon bonds, how much should you be able to sell them for

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