Question: 1 (4 points) Why shouldn't you use bonds with an initial term (maturity issue date) of 30 years for calculating points on the yield curve

1 (4 points) Why shouldn't you use bonds with an initial term (maturity issue date) of 30 years for calculating points on the yield curve less than 5 years out? Should the on-the-run Canadian 5 year bond be used to calculate the 5 year point of the yield curve instead of a 10 year bond even if a 10 year bond has a maturity closer to exactly 5 years away? (Please provide at least tuo reasons for each. (Hint: Coupons, and financial flows.)

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