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the yield to maturity on a 1 - year zero - coupon bonds is currently 6 . 5 % ; the YTM on 2 -

the yield to maturity on a

1 -

year zero

-

coupon bonds is currently

6.5 %

; the YTM on

2 -

year zeros is

7.5 % .

The treasury plans to issue a

2 -

year maturity coupon bond

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