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Question 1 A 10-year bond has a par coupon of 3% and a duration of 9. A 5-year bond has a par coupon of 2%
Question 1
A 10-year bond has a par coupon of 3% and a duration of 9.
A 5-year bond has a par coupon of 2% and a duration of 4.75.
What is the 5 year into 5 year forward rate? Please use just the information above. Think about key concepts from class and apply them.
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