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Compute the effective annually compounded interest rate

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Reference no: EM133071534

You observe the following zero coupon bond prices, on a principal of $1: P(0,1) 0.97P(0,2) 0.96P(0,3) 0.94 P(0,4) 0.92

For each maturity: compute the effective annually compounded interest rate, par coupon rate (assuming annual coupons), and 1-yr implied annually compounded forward rate, and continuously compounded zero-coupon bond yield.

Reference no: EM133071534

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