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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,

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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, 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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