Question: Consider a yield curve defined by the following equation: i_k = 0.08 + 0.004k - 0.001k^2, where i_k is the annual effective rate of

Consider a yield curve defined by the following equation: i_k = 0.08

Consider a yield curve defined by the following equation: i_k = 0.08 + 0.004k - 0.001k^2, where i_k is the annual effective rate of return for zero coupon bonds with maturity of k years. Let j be the one-year effective rate during year 5 that is implied by this yield curve. Calculate j.

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