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Suppose you are given the following bond prices and maturities for 0 coupon bonds (Assume annual coupons) What is the implied forward rate on a

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Suppose you are given the following bond prices and maturities for 0 coupon bonds (Assume annual coupons) What is the implied forward rate on a bond purchased at the end of year 2 and maturing at the end of year 57 (ie, 25) T 1 2 3 4 5 Price $986.19 $953.67 $917.81 $871.44 $772.43 The implied forward rate on a bond issued at T=2 and maturing at T=5 is: % (hint: you might want to calculate some YTMs on existing bonds first.)

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