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Use the information in the table to compute 3-year zero rate r1 = .058 r2 = .061 Show all calculations to arrive at final solution
Use the information in the table to compute 3-year zero rate
r1 = .058
r2 = .061
Show all calculations to arrive at final solution
Coupon | maturity | Par | Price, $ | |
1-year bond | 0 | 1 | 100 | 94.51795841 |
2-year bond | 0.06 | 2 | 100 | 99.83295243 |
3-year bond | 0.068 | 3 | 100 | 100.8820773 |
4-year bond | 0.07 | 4 | 100 | 100.8724043 |
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