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The 6-month and 1-year zero rate both are 12%

Finance Dec 24, 2021

The 6-month and 1-year zero rate both are 12%. For a bond that has a life of 24 months and pays a coupon of 10% per annum (with semi-annual payments and one having just been made), the yield is 1.5% lower than the coupon per annum. What is bond’s price? What is the 24 month zero rate?

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