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The following are the market price of risk-free zero-coupon bonds as a function of their residual maturity (I.e. the time left in those bonds until

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The following are the market price of risk-free zero-coupon bonds as a function of their residual maturity (I.e. the time left in those bonds until they make the final payment). The face value of all bonds can be taken to be 100. Bond price Time to maturity (years) 97 1 94 2 90 3 70 10 I a) 3,6% b) 2,8% c) 3,8% d) 3,1% The following are the market-price of risk-free zero-coupon bonds as a function of their residual maturity (i.e. the time left in those bonds until they make the final payment). The face value of all bonds can be taken to be 100. The three year risk-free rate is close to? Bond price Time to maturity (years) 97 1 94 2 90 3 I 70 10 a) 3,6% b) 2,8% c) 3,8% d) 3.1%

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