A three-year, $1,000, 4%, par-value bond with annual coupons sells for $990, a two-year, $1,000, 3% bond

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A three-year, $1,000, 4%, par-value bond with annual coupons sells for $990, a two-year, $1,000, 3% bond with annual coupons sells for $988, and a one- year, zero-coupon, $1,000 bond sells for $974. Determine the spot rates r1; r2; and r3.

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Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

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Posted Date: Jun 03, 2023 10:25 AM

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A three-year, $1,000, 4%, par-value bond with annual coupons sells for $990, a two-year, $1,000, 3% bond

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Introduction to Operations Research

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