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Suppose 6-month LIBOR is 3% per year (CC) and a 1-year 5% coupon bond has a YTM (semi-annual compounding) of 4% per year. What is

Suppose 6-month LIBOR is 3% per year (CC) and a 1-year 5% coupon bond

has a YTM (semi-annual compounding) of 4% per year. What is the implied rate on a zero coupon bond with 1-year to maturity

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