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Two (default-free) government bonds, A and B, are trading at a current market price of $80 and $88, respectively. Bond A is a zero-coupon bond

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Two (default-free) government bonds, A and B, are trading at a current market price of $80 and $88, respectively. Bond A is a zero-coupon bond with 1 year to maturity. Bond B is a 20% coupon bond with 2 years to maturity. Both bonds have a face value of $100. Assume any coupons are paid annually. (a) Determine the 1-year and 2-year spot rates, and the implied forward rate between years 1 and 2

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