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The current yield curve of zero coupon bond rated AA is as follows. Assume that there are no liquidity premiums. You just bought a 1

The current yield curve of zero coupon bond rated AA is as follows.

Assume that there are no liquidity premiums. You just bought a

15 -

year

maturity corporate bond rated AA with a

0

percent coupon. You expect to

sell the bond in eight years. Find the expected interest rate at the time of

sale. You need to show the steps for your calculation. Otherwise, you risk

receiving zero points.

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