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You are given the following prices for zero coupon bonds per $1.00 of maturity value: Years to Maturity 1 2 3 4 5 Zero-coupon Bond

You are given the following prices for zero coupon bonds per $1.00 of maturity value:

Years to Maturity 1 2 3 4 5
Zero-coupon Bond Price 0.947 0.887 0.837 0.795 0.769

R is the swap rate for a five-year interest rate swap with a notional amount of 10,000.

Determine R.

A) 2.45%

B) 3.65%

C) 4.20%

D) 4.85%

E) 5.45%

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