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The following two securities are currently trading in the economy. Suppose that annualized continuously compounded interest rate is r, and time to maturity is T.

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The following two securities are currently trading in the economy. Suppose that annualized continuously compounded interest rate is r, and time to maturity is T. 2 ~0 B1 = 0.90 B2 = 0.84 0 2 Given these prices, what is the implied discount rate, i.e., er? 0.95 O 0.87 0.8 O

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