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Question 1 Suppose we have a zero coupon bond with a yield of 6% and 5 years to maturity, use duration to estimate its price
Question 1
Suppose we have a zero coupon bond with a yield of 6% and 5 years to maturity, use duration to estimate its price if interest rates fall by 1%.
Question 2
If the 5-year treasury rate was 2.5% and the 5-year TIPS yield was 1.2%, What is the estimated 5-year inflation rate?
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