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Suppose a 2-yr bond that pays a 5% annual coupon has a price of 101% of face. Suppose further that the forward rate from year

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Suppose a 2-yr bond that pays a 5% annual coupon has a price of 101% of face. Suppose further that the forward rate from year 1 to year 2 is 8% annually compounded. What is the 1-year spot rate (annually compounded)? (to nearest 0.01%, and write e.g. 5.02 for 5.02%)

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