Question: Information used for the 2 questions Need the right answer dont use AI - One-year zero selling for $92.29 - Two-year 11% coupon $1,000 par

Information used for the 2 questions Need the right answer dont use AI  Information used for the 2 questions Need the right answer dont
use AI - One-year zero selling for $92.29 - Two-year 11% coupon

- One-year zero selling for $92.29 - Two-year 11% coupon $1,000 par bond selling for $1,000 Assume that the expectations theory of interest rates hotds, no liquidity premium exists, and that the bonds are equally risky and liquid. What is the current one-year rate (in \%s)? What is the implied one-year rate (in \%s) for the second year

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