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The yield rate on a one-year zero-coupon bond is currently 7% and the yield rate on a two-year zero-coupon bond is currently 8%. The Treasury
The yield rate on a one-year zero-coupon bond is currently 7% and the yield rate on a two-year zero-coupon bond is currently 8%. The Treasury plans to issue a two-year bond with 9% annual coupons, maturing at $100 par value. Determine the yield-to-maturity of the two-year coupon bond. O a. 7.85% o b. 7.78% O c. 8.01% O d. 7.96% O e. 7.91%
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