Question: 6. The current term structure is defined by St = 0.06 + 0.01t for t=0, 1, 2, 3. a) Calculate the at-par yield rate for

6. The current term structure is defined by St = 0.06

6. The current term structure is defined by St = 0.06 + 0.01t for t=0, 1, 2, 3. a) Calculate the at-par yield rate for a two year bond. b) Calculate the at-par yield rate for a three-year bond. c) Explain the difference between the two at-par yield rates. 6. The current term structure is defined by St = 0.06 + 0.01t for t=0, 1, 2, 3. a) Calculate the at-par yield rate for a two year bond. b) Calculate the at-par yield rate for a three-year bond. c) Explain the difference between the two at-par yield rates

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