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The yield to maturity on a one year zero-coupon bond is currently 6.751%. The yield to maturity on two year and three year zero bonds
The yield to maturity on a one year zero-coupon bond is currently 6.751%. The yield to maturity on two year and three year zero bonds are 8.375% and 8.885%, respectively. The Fed issues a two year Treasury coupon bond paying an annual coupon with a rate of 9%. Assume the bond has face value $100. What will be the yield to maturity on the bond? 9.00% O 6.96% 8.30% O 7.96%
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