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The following bonds make annual payments and have the principal payment of $100 at maturity. Bond A is a zero-coupon bond, with a maturity of

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The following bonds make annual payments and have the principal payment of $100 at maturity. Bond A is a zero-coupon bond, with a maturity of 1 year, and the current price of $96.98. Bond B is a 3.75%-coupon bond, with maturity of 2 years, and the current price of $99.12. Compute 1- and 2-year spot interest rates. One-year interest rate: %6 Two-year interest rate: 96

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