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Suppose a 1-year zero coupon bond trades at price 97.375, and a 2-year bond making annual coupon payments at rate 6% trades at price 107.320
Suppose a 1-year zero coupon bond trades at price 97.375, and a 2-year bond making annual coupon payments at rate 6% trades at price 107.320 (both bonds have face value 100). What is the 2-year pure yield (percentage point, continuously compounded, round to second decimal place)? Matlab code and handwritten solution with specific steps will be appreciated
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