Question: Suppose the current yield on a one year zero coupon is 3%, while the yield on a 5 year is 6%. Neither bond has a

Suppose the current yield on a one year zero coupon is 3%, while the yield on a 5 year is 6%. Neither bond has a risk of default. Suppose you plan to invest for one year. You will earn more over the year by investing in the five year bond as long as the yield does not rise above what level?

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