Question: supposed the current yield on a one year zero coupon bond is 3%, while the yield on a five year zero-coupon bond is 4%. Neither

supposed the current yield on a one year zero coupon bond is 3%, while the yield on a five year zero-coupon bond is 4%. Neither bond has any risk of default. suppose you plan to invest for one year. you will earn more over the hear by imvestinf in the five-year bomd as lonf as its yield does not ruse about what level? (assume $1 face value bond) Hint: it js beat not to round intermediate calculations- make sure to carry at least four decimal places in intermediate calculations.

The yield should not rise about ____% (round to two decimal places)

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