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You are given the following prices of US Treasury Strips (discount or zero coupon bonds, assume annual compounding) Compute the spot rates for years 1,
You are given the following prices of US Treasury Strips (discount or zero coupon bonds, assume annual compounding) Compute the spot rates for years 1, 2 and 3.Now, suppose you are offered a project which returns the following cash flows: 300m at the end of year 1 $210m at the end of year 2 $400m at the end of year 3 The project costs $6 LT he project using the spot rates computed Above
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