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Assume Zero-Coupon Bond Prices Are B(0,0)=$1,B(0,1)= $0

Question 11

Multiple Choice

Assume zero-coupon bond prices are B(0,0) =$1,B(0,1) = $0.967846,B(0,2) =$0.943010.What is the spot rate of interest?

A) 0.0604
B) 0.0332
C) 0.0263
D) 0.0371
E) None of these answers are correct.

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