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The interest rate is 5 percent per year compute the

Question: 1. The interest rate is 5 percent per year. Compute the six-month zero-coupon bond price using a continuously compounded interest rate.

2. The interest rate is 5 percent per year. Compute the six-month zero-coupon bond price using a banker's discount yield (the zero-coupon bond is a US T-bill with 180 days to maturity).

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