What is the current one-year spot rate

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Q1 A bond with maturity 10 years and par value of $1,000 pays semi- annual coupons and sells for $1,200. Its yield to maturity is 4% and its current yield is 5%, annualized using the bond convention. What is its coupon payment?

Q2 If the one-year forward rate starting one year from nOW is 3% and the two-year spot rate is 2%, What is the current one-year spot rate?

Reference no: EM133071573

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