Question: Problem 2 [2pts] Suppose the current spot rates are: Time to maturity (years) 0.25 Spot rates rate r0.25 1.6% r0.5 2.0% r0.75 2.4% ri 2.8%

Problem 2 [2pts] Suppose the current spot rates are: Time to

Problem 2 [2pts] Suppose the current spot rates are: Time to maturity (years) 0.25 Spot rates rate r0.25 1.6% r0.5 2.0% r0.75 2.4% ri 2.8% 0.5 0.75 1 upon bond paying a coupon rate of 8% per year quarterly What is the price of the 1-year and a face value of $100

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