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QUESTION 3 Consider the following five 51,000 par value 2280-coupon bonds: (A) Maturity in 1 year and 4,5% Yield to Maturity. (8) Maturity in 2

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QUESTION 3 "Consider the following five 51,000 par value 2280-coupon bonds: (A) Maturity in 1 year and 4,5% Yield to Maturity. (8) Maturity in 2 years and 5.9 Yield to Maturity. (0) Maturity in 3 years and Yield to Maturity: (D) Maturity in 4 years and 9 Yield to Maturity and (E) Maturity in 5 years and 10Yield to Maturity: Ignoring any liquidity premiums, the expected 1 year interest rate 1 year from now should be

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