Question: Problem 6.9 The yield rate on a one year zero-coupon bond is currently 7% and the yield rate on a 2-year zero coupon bond is

Problem 6.9 The yield rate on a one year zero-coupon bond

Problem 6.9 The yield rate on a one year zero-coupon bond is currently 7% and the yield rate on a 2-year zero coupon bond is currently 8%. The Treasury plans to issue a two year bond with a 9% annual coupon, maturing at S100 par value. Determine the yield to maturity of the two year coupoin bond

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