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The market trades a default-free coupon bond that pays a coupon of $4.00 every six months, and makes a final payment of $104.00 (the last

The market trades a default-free coupon bond that pays a coupon of $4.00 every six months, and makes a final payment of $104.00 (the last coupon and the principal) in one year. This bond trades at $102.00. Moreover, a six-month zero-coupon bond is traded at $98.20.


Find the one-year spot rate?

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