Question: Problem 4: Use the following information to answer the questions. Suppose we see the following prices for zero coupon b from one to six years:

Problem 4: Use the following information to answer the questions. Suppose

we see the following prices for zero coupon b from one to

Problem 4: Use the following information to answer the questions. Suppose we see the following prices for zero coupon b from one to six years: Maturity in Years Bond Price 2 $92.18 4 Note: Each bond has a face value of $100 a) What is the three-year spot rate? b) What is the price of a six-year coupon bond that has a face value of $1,000 and an annual coupon rate of 8%? The coupons are paid annually

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