The yield rate on a one year zero-coupon bond is currently

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The yield rate on a one year zero-coupon bond is currently 7% and the yield rate on a 2 year zero coupon is currently 8%. The treasury plans to issue a two year bond with a 9% annual coupon, maturing at $100 par value. Determine the yield to maturity of the two year coupon bond.

Reference no: EM131044184

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