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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 zero-coupon bonds each with a face value of $100: You also observe a 10% government coupon bond with Time to Maturity (Years) Price $88,777.52 $930,238.22 $14019.06173,963.146874.680.5981.096 face value of 10,000 dollars, one year to maturity, paying semi-annual coupons. This bond has a market price equal to $11,070. a. Find the annualized yield to maturity for the two zero-coupon bonds? b. Your friend claims that the market annual yield to maturity for the coupon paying bond is 4.15%. Is she correct?

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