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The yield to maturity on a 1 year zero coupom bonf is 3%, and on a 2 year zero coupon bond is 3.5%. Assume facr
The yield to maturity on a 1 year zero coupom
bonf is 3%, and on a 2 year zero coupon bond is 3.5%. Assume facr value of 1000$ and annual compounding. Show thay your 1 year holding period return is same from
both of the bonds. Hint; you need to find r2.
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