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The term structure of interest rates is as follows: Term Structure of Interest Rates Time to Maturity Yield to Maturity 1.0 year 0.40% 1.5 years
The term structure of interest rates is as follows: Term Structure of Interest Rates Time to Maturity Yield to Maturity 1.0 year 0.40% 1.5 years 0.75% 2.0 years 1.00% 2.5 years 1.50% 3.0 years 2.00% 3.5 years 2.75% 4.0 years 3.00% 4.5 years 3.25% 5.0 years 3.75% 5.5 years 4.00% 6.0 years 5.00% Note: yields are quoted on an annual basis. Using this information, determine the current market price of a zero coupon bond with 3 years to maturity. The current market price of a zero coupon bond with 3 years to maturity is
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