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Question A: You find the following par yield curve reported in the Wall Street Journal: All yields are per annum semi - annual compounding. a
Question A:
You find the following par yield curve reported in the Wall Street Journal:
All yields are per annum semiannual compounding.
a Compute the corresponding zero yields from the above information
b Price a yr Tnote that pays pa coupons
c If the expectation hypothesis is true, what is your best guess regarding
the yr zero yield in a year's time?
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