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R(O,t) is the Spot Zero-Coupon (or Discount) Rate. It is the annualized rate on a pure Unit Discount bond B(O,t) - the bond that pays
R(O,t) is the Spot Zero-Coupon (or Discount) Rate. It is the annualized rate on a pure
Unit Discount bond B(O,t) - the bond that pays 1 dollar at time t. Assume that R(0,5)
= 9.79 per cent. What is the price of B(0,5)? Answer with three decimal digits accuracy.
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