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You are given the following prices of 1000 par value bonds with 10% annual coupons. the price of a 3-year bond is 1030, the price
You are given the following prices of 1000 par value bonds with 10% annual coupons. the price of a 3-year bond is 1030, the price of a 4-year bond is 1035, and the price of a 5-year bond is 1037. The 3-year spot rate is 8% and the 6-year spot rate is 7% find The -4-year spot rate The 5-year spot rate Price of it 6-year bond.
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