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The six-month and one-year rates are 4% and 5% per annum with semiannual compounding. Which of the following is closest to the one-year par yield
The six-month and one-year rates are 4% and 5% per annum with semiannual compounding. Which of the following is closest to the one-year par yield expressed with semiannual compounding?
a. 5.05%
b. 4.98%
c. 4.90%
d. 5.50
Please help me with the correct answer asap thank you! :)
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