The table below presents the prices of zero-coupon bonds of different maturities. The bonds have...
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Accounting
The table below presents the prices of zero-coupon bonds of different maturities. The bonds have a value of R1,000. Given the information presented in the table below determine the interest rate that you would expect to pay after 2-years on a 3-year loan. Maturity Bond price 1 R970.87 2 R907.03 3 R839.62 4 R708.43 5 R821.93 O A.6% O B.3.34% O C.1.07% O D.10.35%
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