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You gather the following Par rate data for benchmark bonds paying annual coupons: Maturity (yrs) Par rate ( YTM, %) 1 15.00 2 10.00 3
You gather the following Par rate data for benchmark bonds paying annual coupons:
| Maturity (yrs) | Par rate ( YTM, %) |
| 1 | 15.00 |
| 2 | 10.00 |
| 3 | 5.00 |
| 4 | 4.00 |
| 5 | 3.00 |
What is the closest 3-year spot rate, Z3?
Group of answer choices
4.55%
4.70%
4.85%
5.00%
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
