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Suppose you observe the following par rates. Solve for the spot rates and discount factors. Please show work! 1. Suppose you observe the following par

Suppose you observe the following par rates. Solve for the spot rates and discount factors.

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Please show work!

1. Suppose you observe the following par rates. Solve for the spot rates and discount factors. Maturity Par Rate Spot rate Discount Factor 1 2.00% 2 2.57% 3 3.11% 3.88%

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