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You observe the following term structure: a. If you believe that the term structure next year will be the same as today's, calculate the return
You observe the following term structure: a. If you believe that the term structure next year will be the same as today's, calculate the return on (i) the 1-year zero and (ii) the 4year zero. (Do not round intermediate calculations. Round your answers to 1 decimal place.) b. Which bond provides a greater expected 1-year return? 1-year zero-coupon bond 4-year zero-coupon bond
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