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Business, 11.02.2020 20:54 Amyra2003

The following is a list of prices for zero-coupon bonds of various maturities.

a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. (Do not round intermediate calculations. Round your answers to two decimal places.)

b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.)

Maturity (years) Price of Bond
1 $ 936.78
2 926.47
3 831.12
4 777.49

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The following is a list of prices for zero-coupon bonds of various maturities.

a. Calcul...

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