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Question For $1,000 zero-coupon bonds of varying maturities, determine the missing value A in the following table: Year i 1 2 3 4 Effective rate

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Question For $1,000 zero-coupon bonds of varying maturities, determine the missing value A in the following table: Year i 1 2 3 4 Effective rate in year i A 8.0% B 11.0% Zero-coupon bond maturity n, in years 1 2 3 4 Price of n-year zero-coupon bond $943.40 $805.08 D n-year spot rate E F G H Possible Answers 7% but 8.1% but 9.2% but

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