Question: Please solve and explain in a SIMPLE way, thanks! 4. One-year Treasury bonds yields 5%, while 2-year bonds yield 6%. You are quite confident that

Please solve and explain in a SIMPLE way, thanks!

Please solve and explain in a SIMPLE way, thanks! 4. One-year Treasury

4. One-year Treasury bonds yields 5%, while 2-year bonds yield 6%. You are quite confident that in one year's time 1-year bonds will yield 8%. Would you buy the 2- year bond today? Show that there is a better strategy

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