What is the arbitrage free

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The following table summarizes yields of various default-free, zero-coupon, $100 face value bonds:

Maturity

YTM

1 year

4.4059%

2 years

4.6848%

3 years

4.8843%

4 years

5.0704%

5 years

5.3663%

Use this information to answer the following two questions.

Given the zero coupon yields above, what is the arbitrage free, annual YTM of a $10 annual coupon (paid annually), 5 year maturity, $100 face value bond?

Reference no: EM133120034

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