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You have been provided with the following information zero coupon bonds with $1000 face value.

Maturity - semi -annual periods	semi-annual spot rates
1	4.25
2	4.15
3	3.95
4	3.70
5	3.50
6	3.25
7	3.05
8	2.90

1. Compute the forward interest rates.

2. Graph the yield curve.

3. Explain the factors that account for the shape of the curve.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9790862

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