Question: A 1-year zero coupon bond is priced at $947.87, while a 2-year zero coupon bond is priced at $881.66. Derive the 1-year and 2-year spot

A 1-year zero coupon bond is priced at $947.87, while a 2-year zero coupon bond is priced at $881.66. Derive the 1-year and 2-year spot rate y₁ and y_2.

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