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The annualized interest rates are Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 3% 4% 5% 6% 6% 6% 7% 7% 7% a) Draw

The annualized interest rates are Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 3% 4% 5% 6% 6% 6% 7% 7% 7% a) Draw the yield curve. b) Compute the 9 n-year compounded holding rates of return from now to year n. c) Compute the 9 1-year forward rates of return.

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