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Suppose 6-month Treasury bills are trading at a YTM of 1.9%, 12-month T-bills are trading at a YTM of 2.9%. If 18-month Treasury notes with

Suppose 6-month Treasury bills are trading at a YTM of 1.9%, 12-month T-bills are trading at a YTM of 2.9%. If 18-month Treasury notes with a coupon rate of 5% are trading at par ($100), then what is the 18-month spot rate?

Assume semi-annual compounding. Round your answer to 4 decimal places.

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