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What is the current two-year spot rate

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Question 1: It is expected that in exactly two years, a 12-month pure discount bond with a face value of $5,000 will sell for $4,808. If 3-year spot (zero) rates are 4.50% p.a., based on pure expectation theory, what is the current 2-year spot rate?

Reference no: EM132861371

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