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The price of zero coupon bonds give you the following forward rates ( 3 points ) Year Forward rated 1 5 % 2 6 .
The price of zero coupon bonds give you the following forward rates points
Year
Forward rated
What is the price of a zero coupon bond that is purchased today and matures in years? What is the expected total rate of return?
What is the price of a year coupon bond, par value $ If you purchased at that price, what would your total expected rate of return be over the year period.
Under the expectations hypothesis, what is the expected realized coupon yield of the coupon bond?
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