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A government bond with four-years to maturity has a nominal value of 1,000 and a...
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A government bond with four-years to maturity has a nominal value of 1,000 and a coupon rate of 5%. The one-year interest rate is 3%, the two-year interest rate is 3%, the four-year interest rate is 4.5% and the four-year rate is 5%. Which of the following is closest to the bond’s yield to maturity?
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