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You observe the following prices of Treasury securities per $ 1 0 0 of par value: a 6 - month T - bill sells for
You observe the following prices of Treasury securities per $ of par value:
a month Tbill sells for
a year Tbill sells for
a year coupon Tbond sells for
Assume that the pure expectations theory of the term structure holds.
a Calculate the month, year, and year spot rates on a bondequivalent yield basis.
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