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Business, 16.11.2019 03:31 rainbowsauxe

Compute the two-year nominal interest rate using the exact formula and the approximation formula for each set of assumptions listed in (a) through (c). a. it = 2%; it + 1 e = 3% b. it = 2%; it + 1 e = 10% c. it = 2%; it + 1 e = 3%. the term premium on a two-year bond is 1%.

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