Question: *25. EXCEL SOLUTION Suppose you are given the following information about the default-free, coupon-paying yield curve: Maturity (years) 1 2 3 Coupon rate (annual

*25. EXCEL SOLUTION Suppose you are given the following information about the

*25. EXCEL SOLUTION Suppose you are given the following information about the default-free, coupon-paying yield curve: Maturity (years) 1 2 3 Coupon rate (annual 0.00% 10.00% 6.00% 12.00% payments) YTM 2.000% 3.908% 5.840% 5.783% a. Use arbitrage to determine the yield to maturity of a two-year, zero- coupon bond. b. What is the zero-coupon yield curve for years 1 through 4?

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