medium · FRM Part 1 Valuation and Risk Models
A 2-year bond has a 6% annual coupon and a YTM of 5%. The 1-year spot rate is 4%.
What is the 2-year spot rate implied by these figures (using annual compounding)?
- 6.00%
- 5.03%
- 4.50%
- 5.00%
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