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You have estimated spot rates as follows: r1 = 6.20%, r2 = 6.60%, r3 = 6.90%, r4 = 7.10%, ns = 7.20%. 0. What are
You have estimated spot rates as follows: r1 = 6.20%, r2 = 6.60%, r3 = 6.90%, r4 = 7.10%, ns = 7.20%. 0. What are the discount factors for each date (that is, the present value of $1 paid in year 0? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Year Discount Factors 1 2 3 4 5 b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of: () 6.2%, two-year bond: (11) 6.2%, five- year bond; and (iii) 11.2%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Present Value b-1 b 6 20%, two-year bond 6 20%, five-year bond 11 20%, five year bond b
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