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What is the basic principle underlying bootstrapping? Explain how to compute the spot rate for a theoretical 1.5-year zero-coupon Treasury.
Dividends
Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.
Doubling
The process of increasing an amount, size, or number by two times its original value.
Invested Money
Funds allocated by individuals or entities into financial instruments or assets with the expectation of generating income or profit.
Interest Rates
The amount charged by lenders as a percentage of the principal, as the cost for borrowing money.
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