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Suppose that a 1 - year zero - coupon bond with face value 1 0 0 currently sells at 9 4 . 3 4 ,
Suppose that a year zerocoupon bond with face value currently sells at while a year zero sells at You are considering the purchase of year bond making annual coupon payments. The face value of the bond is and the coupon rate is per year.
a What are the yields of the two zeros, and what is the price of the year coupon bond?
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