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Question 11 (5 points) Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.50%

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Question 11 (5 points) Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.50% 3 8.00 D 8.50% E 10.25% The expected 1-year interest rate in the third year should be 10% 8% 7% 9%

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