Observing the Following Term Structure; a US Treasury Bond Maturing

question 80

Multiple Choice

Observing the following term structure; a US treasury bond maturing in 5 years has a yield of 6% while US Treasury bond maturing in 3 years has a yield of 8%; what is the expected 2 year rate,3 years from now?

• A) 3.07%
• B) 8.07%
• C) 2.36%
• D) 4.35%

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Definitions:

Religious Bodies

Organized groups of individuals who share the same religious beliefs and practices, often structured with a hierarchy and common rituals.

Church Doctrine

The official teachings and beliefs of a religious institution, often based on sacred texts and traditions.

Breaking Away

The act of distancing oneself from previous affiliations or conventions, seeking independence or a new direction.

Sects

Usually form by breaking away from churches due to disagreement about church doctrine. Sects are less integrated into society and less bureaucratized than churches. They are often led by charismatic leaders, who tend to be relatively intolerant of religious opinions other than their own.