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The six-month and one-year zero rates are both 5% per annum. For a bond that has a life of 18 months and pays a coupon
The six-month and one-year zero rates are both 5% per annum. For a bond that has a
life of 18 months and pays a coupon of 6% per annum (with semiannual payments),
the bond price is 99 (in hundreds). What is the 18-month zero rate?
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