Question: A one year zero coupon bond has an effective annual rate of 11.5%. A three year zero coupon bond has an effective annual rate of

A one year zero coupon bond has an effective annual rate

A one year zero coupon bond has an effective annual rate of 11.5%. A three year zero coupon bond has an effective annual rate of 14.5%. If a 3 year coupon-bearing bond that pays coupons of 15.5% annually has a yield of 14.1%, what is the effective annual rate of a two year zero coupon bond

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