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Suppose annual YTM for US Treasury bonds for 0.5 yr, 1 yr and 1.5 yr are 6.25%, 6.05% and 5.79%, respectively. What is the spot
Suppose annual YTM for US Treasury bonds for 0.5 yr, 1 yr and 1.5 yr are 6.25%, 6.05% and 5.79%, respectively. What is the spot rate for 1.5 years? Assume bonds with maturity less than or equal to 1 year are zero-coupon bonds.
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