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Suppose three Treasury zero-coupon bonds with one, two and three years to maturity are trading for $989, $972 and $960 respectively. All three bonds have
Suppose three Treasury zero-coupon bonds with one, two and three years to maturity are trading for $989, $972 and $960 respectively. All three bonds have $1,000 par value (value paid at maturity). Construct and draw segment of the Treasury yield curve corresponding to 1-3 years to maturity. Please provide all necessary computations and indicate all relevant values on the graph.
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