Question: Assuming the 3 year yield 7 years from now is 3% and the current 7 year is 2%. What is the implied 10 year yield?

Assuming the 3 year yield 7 years from now is 3% and the current 7 year is 2%. What is the implied 10 year yield?

Hint: Use the forward Yield formula to solve for the 10 year yield

2.3%

2.5%

1.6%

None of the above

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