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What are the 1-year and 2-year riskless rates r and r2? Bond Price Year 1 Year 2 Zero1 yr DF1 = 1 + 1 1

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What are the 1-year and 2-year riskless rates r and r2? Bond Price Year 1 Year 2 Zero1 yr DF1 = 1 + 1 1 Zerozyr DF2 = ( 1 + 1 2 ) 2 O - - O What is the no-arbitrage price of a bond C which pays 35 in one year and 54 in two years? Bond Price Year 1 Year 2 C Pc 35 54

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