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(10 points) You are given the following 1-year forward rates, deferred for t years: t 0 1 2 3 Forward Rate f(1,0+1] 3% 5% 6%

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(10 points) You are given the following 1-year forward rates, deferred for t years: t 0 1 2 3 Forward Rate f(1,0+1] 3% 5% 6% 8% Determine the yield rate of a 3-year 1000 par value bond with annual coupons at 4% and redemption value of 1150. (10 points) You are given the following 1-year forward rates, deferred for t years: t 0 1 2 3 Forward Rate f(1,0+1] 3% 5% 6% 8% Determine the yield rate of a 3-year 1000 par value bond with annual coupons at 4% and redemption value of 1150

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