Question: One-year Treasury bonds yield 5% while 2-year bonds yield 6%. You are quite confident that in one year's time, one-year bonds will yield 8%. Would

One-year Treasury bonds yield 5% while 2-year bonds yield 6%. You are quite confident that in one year's time, one-year bonds will yield 8%. Would the higher yield on 2-year bonds cause you to prefer them? Explain your answer.

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