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Question 4 Consider a 20-year Euro area zero-coupon bond that has a par value of 100 and is priced at 58.125. a) Calculate the implied

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Question 4 Consider a 20-year Euro area zero-coupon bond that has a par value of 100 and is priced at 58.125. a) Calculate the implied yield for this bond. b) What is the relationship between the implied yield and the implied spot rate for this bond? 14 marks]

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