Question: Consider a 2-year euro-denominated bond that has a current market price of 970, a face value of 1,000, and an annual coupon of 5%. If

Consider a 2-year euro-denominated bond that has a current market price of €970, a of €1,000, and an annual of 5%. If the 1-year spot interest rate is 5.5%, what is the 2-year spot interest rate?

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