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You are given the following prices of $1,000 par value bond with 10% annual coupons. 2 3 Term (in Years) 1 Price ($) 1020 1025.75

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You are given the following prices of $1,000 par value bond with 10% annual coupons. 2 3 Term (in Years) 1 Price ($) 1020 1025.75 1027.6 Find the spot rates for t=1,2,3 that are implied by these bond prices Type your answers in decimals and in order. Answer #1 is spot rate for t=1, and so on. {#1) III (#2) (#3)

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