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What is the 1-year spot rate, expressed as an Annual Percentage Rate (i.e. a quoted rate, semi-annual compounded)? All bonds have a face value of

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What is the 1-year spot rate, expressed as an Annual Percentage Rate (i.e. a quoted rate, semi-annual compounded)? All bonds have a face value of $100 and pay semi- annual coupons. (Enter your answer as a decimal number, rounded to 4 decimal places - do NOT enter 8.5000%, DO enter 0.0850). Bond Maturity (years) Coupon rate Yield Bond A 0.5 2% 6% Bond B 1.0 4% 13%

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