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You have estimated spot rates as follows: r 1 = 5.00%, r 2 = 5.40%, r 3 = 5.70%, r 4 = 5.90%, r 5
You have estimated spot rates as follows: |
r1 = 5.00%, r2 = 5.40%, r3 = 5.70%, r4 = 5.90%, r5 = 6.00%. |
a. | What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.) |
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