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The table below lists maturities, coupons and prices for three bonds. All bonds have the same default risk and a face value of 100. Bond

The table below lists maturities, coupons and prices for three bonds. All bonds have the same default risk and a face value of 100.

Bond Maturity Coupon Price
A 3 6% 94
B 2 5% 98
C 2 3% 94.5

a) What is the yield to maturity of a two-year zero-coupon bond?

b) What is the price of a one-year zero-coupon bond with a face value of 100?

c) What is the implied one-year forward rate for the period between year 2 and year 3?

d) What is the price of a bond similar to Bond C but paying a 6% coupon instead?

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