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You have two zero - coupon bonds. A 1 - year bond with a principal of $ 5 0 0 and a 2 - year

You have two zero-coupon bonds. A 1-year bond with a principal of $500
and a 2-year bond with a principal of $2,000. The prices are $476.1905 and $1,280.
Compute the term-structure of interest rates

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