3. Consider the following data on the prices of four bonds: Bond...

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Finance

3. Consider the following data on the prices of four bonds:

Bond Principal($) Time to Maturity(Years) Annual Coupon($) Bond Price($)
100 0.50 0 92.0
100 1.00 0 91.0
100 1.50 3 99.0
100 2.00 6 104.0

*Half the stated coupon is assumed to be paid every six months:

Calculate two-year zero rate.

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