Question: Question 7 4 pts The current yield to maturity on a one year bond is.89%. Economists forecast for one-year rates starting in year 2 are:

Question 7 4 pts The current yield to maturity on a

Question 7 4 pts The current yield to maturity on a one year bond is.89%. Economists forecast for one-year rates starting in year 2 are: E(211) = .95% E(3r1) = 1.05% El4r1) = 1.85% E(5r1) = 3.90% What is the yield to maturity on a 5 year bond? 1.72% 1.73% 2.05% 1.80% 3.90%

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