Calculate the 2-year par yield

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Reference no: EM133123068

Problem:

Bond Principal ($)

Time to Maturity (yrs)

Annual Coupon ($)*

Bond Price ($)

100

0.5

0.0

98

100

1.0

0.0

95

100

1.5

6.2

101

100

2.0

8.0

97

*Half the stated coupon is paid every six months

Calculate the 2-year par yield.

Reference no: EM133123068

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