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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