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Suppose that the current annual term structure of interest rates is given by Y1=1.1%, f1,1=2.7%, y3=3.9%, F1,3=2%, f3,2=3.9%, Y6=2.6%, f4,3=5.2%, F7,1=4.9%. Compute the (positive) gross
Suppose that the current annual term structure of interest rates is given by Y1=1.1%, f1,1=2.7%, y3=3.9%, F1,3=2%, f3,2=3.9%, Y6=2.6%, f4,3=5.2%, F7,1=4.9%. Compute the (positive) gross redemption yield of a 8-year fixed-interest bond which pays a coupon of 6 per 100 nominal every 4 years and redeems at 107%.
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