Question: which one is correct? You are provided with information about the yield curves of treasury securities as follows: Maturity On-the-run yield Pure yield (years) curve

which one is correct?

which one is correct? You are provided with
You are provided with information about the yield curves of treasury securities as follows: Maturity On-the-run yield Pure yield (years) curve curve 1 2.50% 2.50% 2 2.99% 3 3.48% 3.50% 4 3.95% 5 4.37% The on-the-run yield curve is plotted using the yields of coupon bonds paying annual coupons, which are recently issued and traded at par. The pure yield curve is plotted using the yields of zero coupon bonds. From the yields information above, the 5-year rate of zero-coupon treasury bonds is . O 445% O 4.50% O 4.55% O 4.40%

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