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Question 2 (10 points) You are given the following assets: Find the current interest rate...

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Question 2 (10 points) You are given the following assets: Find the current interest rate that would make the current price correct. Show all formulas and the numbers in the correct spot. a) One year T-Bill currently sells for $995 b) Bank of Canada SPRA priced at $999.99 (approximate the annual equivalent rate by multiplying number of days rather than finding the true effective rate.) c) Perpetual bond which pays out $75 per year sells for $1500. d) 20 year bond with a 4% coupon currently sells for $980 (this one can be approximate) e) 20 year bond with a 4% coupon and 8 years left to maturity sells for $980 (again approximate is fine.) f) 5 year strip bond (no coupons) currently sells for $980. g) 5 year bond with 6% coupons currently sells for $1000. h) What is the value of the coupons of the bond in g) i) What is the value of the face (if the bond became stripped of its coupons) in part g)

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