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Question A two-year bond has a face amount of $100 and pays annual coupons at an effective annual rate of 15%. The bond has an

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Question A two-year bond has a face amount of $100 and pays annual coupons at an effective annual rate of 15%. The bond has an effective annual yield to maturity of 8% and is priced at $112.48. If the one year spot rate is 7%, then the two year spot rate is: Possible Answers A 7.0000% B 8.0016% 8.0727% D 8.5492% E 9.0000%

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