You Find That the Yield on a 4-Year Bond Is

question 73

Multiple Choice

You find that the yield on a 4-year bond is 10% while that of a 2-year bond is 8%.What should be the yield on a 2-year bond beginning two years from now as predicted by the expectations' theory?

• A) 2.00%
• B) 12.04%
• C) 25.25%
• D) none of the above

---

Definitions:

Adolescence

The transitional stage from childhood to adulthood that includes physical, psychological, and social changes.

U.S. Population

Refers to the total number of people living in the United States of America.

Contingency Management

A behavioral intervention strategy that modifies behavior by changing the consequences of that behavior, often through reward or punishment.

Alcohol

A psychoactive substance, typically found in drinks like beer, wine, and spirits, that can alter mood and behavior when consumed.