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Compute the year zero-coupon rates

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Reference no: EM132908011

Problem a) The 10-year and 12-year zero-coupon rates are, respectively, equal to 4% and 4.5%. Compute the 11 ¼ - and 11 ¾ - year zero-coupon rates using the linear interpolation.

Problem b) Same question when you know the 10-year and 15-year zero-coupon rates, which are, respectively, equal to 8.6% and 9%.

Reference no: EM132908011

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