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What is the current one-year spot rate

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Question 1: It is expected that in exactly one year, a 12-month pure discount bond with a face value of $10,000 will sell for $9,515.00. If 2-year spot (zero) rates are 4.90% p.a., based on pure expectation theory, what is the current 1-year spot rate?

Reference no: EM132593297

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