Effective annual rate of a two year zero coupon bond

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A one year zero coupon bond has an effective annual rate of 11%. A three year zero coupon bond has an effective annual rate of 14%. If a 3 year coupon-bearing bond that pays coupons of 14% annually has a yield of 13.6%, what is the effective annual rate of a two year zero coupon bond?

Reference no: EM133126570

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