A six-month zero-coupon bond is trading at $98, while a one-year 6% coupon bond is trading at
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A six-month zero-coupon bond is trading at $98, while a one-year 6% coupon bond is trading at $99. Assume coupons are paid semiannually and that both bonds have a face value of $100. What are the six-month and one-year discount functions implied by these prices?
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