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Suppose that the current one-year zero-coupon rate is 3.5% and that the expected one-year rate next year is 3.0%. If the current 2-year spot
Suppose that the current one-year zero-coupon rate is 3.5% and that the expected one-year rate next year is 3.0%. If the current 2-year spot rate is 3.5%, what is the implied term premium for the two-year zero-coupon bond? Use the approximation from class.
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
