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Question 1 Consider the following risk-free T-bill and coupon bonds available for sale in the bond market (annual coupons): Maturity Price Coupon T-bill (zero coupon

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Question 1 Consider the following risk-free T-bill and coupon bonds available for sale in the bond market (annual coupons): Maturity Price Coupon T-bill (zero coupon bond) 6.3% 7.5%, 1003 1008 3 Construct the term structure of interest rates for these three years a. b. Your company plans to issue four-year maturity bonds. You plan to issue bonds priced at S1085. At what level should you plan to set the coupon on your bond to justify this price

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