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You observe the following market prices of zero - coupon bonds each with a face value of $ 1 0 0 : You also observe
You observe the following market prices of zerocoupon bonds each with a face value of $: You also observe a government coupon bond with Time to Maturity Years Price $ $ $ face value of dollars, one year to maturity, paying semiannual coupons. This bond has a market price equal to $ a Find the annualized yield to maturity for the two zerocoupon bonds? b Your friend claims that the market annual yield to maturity for the coupon paying bond is Is she correct?
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