Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has coupon rate 10% per annum, and has dirty price $100.08. The second bond matures in twelve months, has coupon rate 12% per annum, and has dirty price $103.86. What is the twelve month spot rate with semi-annual compounding?     7.85%     7.69%     7.91%     8.01%

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