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We observe a 2-year, 10% coupon Fixed Income Bond quoted at 98$ with face value 100$. If we know that 1 year 10% coupon Fixed
We observe a 2-year, 10% coupon Fixed Income Bond quoted at 98$ with face value 100$. If we know that 1 year 10% coupon Fixed Income Bond with face value 100$, is quoted at 100$, calculate spot rate observed in the marked for maturity 2-year (use decomposition method). This 2-year spot rate is equal to
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