Question: Suppose the current yield on a one year, zero coupon, bonus, 3% while the yield on a five year zero coupon, bonus, 4%. Neither bond
Suppose the current yield on a one year, zero coupon, bonus, 3% while the yield on a five year zero coupon, bonus, 4%. Neither bond has any risk of default suppose you plan to invest for one year you are more over the year by investing in the five-year bond as long as its you does not rise above what level assume one dollar face value bond hit it is best not to round intermediate calculations. Make sure to KARY at least four decimal places in intermediate calculations assume annual Compounding, the yield should not rise above what percent?
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