Given the following government bond yields: one-year, 2% and five-year, 7%. What is the two year government bond yield one would linearly interpolate from this information?

a) 3.25%

b) 4.50%

c) 3.67%

d) none of the above.

Answer rating: 100% (QA)

Define the yields Oneyear bond yield 2 Fiveyear bond yield 7 Calcula... View the full answer