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Question Description Show that the rate of return on the 3-year zero in the table below also will be 5%. Maturity (years) Yield to Maturity

Question Description

Show that the rate of return on the 3-year zero in the table below also will be 5%.

Maturity (years) Yield to Maturity (%)
1 5%
2 6%
3 7%
4 8%

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