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Term (years) 1 2 3 4 5 Zero-coupon YTM 5% 6% 7% 8% 9% Assume that zero-coupon coupon yields on default-free securities are as summarized

Term (years)

1

2

3

4

5

Zero-coupon YTM

5%

6%

7%

8%

9%

Assume that zero-coupon coupon yields on default-free securities are as summarized in the table. Then consider that a 2year, default-free security with a face value of 1,000dollars and an annual coupon rate of 6%.

Q1.Find the yield to maturity for this bond.

Q2.Find the duration of this bond.

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