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You have the following information on three zero coupon bonds: Bond 1: time to maturity: 1 year, face value = $1,000, bond price = $974.96;

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You have the following information on three zero coupon bonds: Bond 1: time to maturity: 1 year, face value = $1,000, bond price = $974.96; Bond 2: time to maturity: 2 years, face value = $1,000, bond price = $941.25; Bond 3: time to maturity: 3 years, face value = $1,000, bond price = $910.89. Part A: Calculate the one, two and three year spot rates. Part B: Calculate the forward rate over the second year and the forward rate over the third year. Round to at least 2 decimals. Add a File

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