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Business, 24.03.2020 21:12 haleyblu6351

Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $89.75, while a 2-year zero sells at $79.88. You are considering the purchase of a 2-year-maturity bond making annual coupon payments. The face value of the bond is $100, and the coupon rate is 10% per year. a. What is the yield to maturity of the 2-year zero?

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Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $89.75, while a 2-yea...
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