Recall that the Par Rate is the coupon rate such that a bond sells at par. A

company wants to issue a $3$ year bond with annual payment that sells at

par. Assume that the rates in percentage points are $R(0,1)=2$ and $R(0,2)=4$

and $R(0,3)=6$ The coupon rate should be set at $($Hint$.$ Work out and apply

the Bond Par Yield formula to the $3$ year bond case.$)$Recall that the Par Rate is the coupon rate such that a bond sells at par. A

company wants to issue a $3$ year bond with annual payment that sells at

par. Assume that the rates in percentage points are $R(0,1)=2$ and $R(0,2)=4$

and $R(0,3)=6$ The coupon rate should be set at $($Hint$.$ Work out and apply

the Bond Par Yield formula to the $3$ year bond case.$)$