What Is the Yield to Maturity of a 5-Year Bond

question 40

Multiple Choice

What is the yield to maturity of a 5-year bond? $\begin{array}{lr}&\text { 1-Year } \\&\text { Forward }\\\text { Year } & \text { Rate } \\1 & 4.6 \% \\2 & 4.9 \% \\3 & 5.2 \% \\4 & 5.5 \% \\5 & 6.8 \%\end{array}$

• A) 4.6%
• B) 4.9%
• C) 5.2%
• D) 5.5%
• E) 5.8%

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