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The following table lists the annual spot rates for the next 4 years: Time (years) Rate (%) 1 2.6 2 3.4 3 4.47 4 5.36

The following table lists the annual spot rates for the next 4 years:

Time (years)

Rate (%)

1

2.6

2

3.4

3

4.47

4

5.36

Under these conditions, what would be the yield to maturity on a 2 year risk free bond paying a 4.3% annual-payment coupon?

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