Question: A bond has the following payment structure: $1,000 payable in one year and $1,000 payable in two years. The yield to maturity in 10% and

A bond has the following payment structure: $1,000 payable in one year and $1,000 payable in two years. The yield to maturity in 10% and the two year spot rate is 8%. What is the one year spot rate?

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