Question: If the yield to maturity for a one year zero coupon bond is 5.2% and the yield to maturity for a 2-year zero coupon bond

  1. If the yield to maturity for a one year zero coupon bond is 5.2% and the yield to maturity for a 2-year zero coupon bond is 5.8%, what is the implied future short rate from year 1 to 2 (use 5 decimal places, write 3.333% as .03333)?

  1. Price a 5-year 4% semiannual coupon bond if the yield to maturity is 6% (write the price as if par is 100, use 5 decimal places)

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