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Tirion sells a zero-coupon bond that matures in 3 years for 5,000, which he immediately uses to buy a zero-coupon bond that matures in 4

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Tirion sells a zero-coupon bond that matures in 3 years for 5,000, which he immediately uses to buy a zero-coupon bond that matures in 4 years. Find the annual effective yield of his investment given the following yield curve: Term to maturityt 1 2 5 6 7 Spot rate se 2% 3% 4% 5% 6% 7% 8% Tirion sells a zero-coupon bond that matures in 3 years for 5,000, which he immediately uses to buy a zero-coupon bond that matures in 4 years. Find the annual effective yield of his investment given the following yield curve: Term to maturityt 1 2 5 6 7 Spot rate se 2% 3% 4% 5% 6% 7% 8%

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