YIELD CURVE FOR ZERO COUPON BONDS RATED AA
Assume that there are no liquidity premiums.
To the nearest basis point,what is the expected interest rate on a four-year maturity AA zero coupon bond purchased six years from today?
A) 10.41 percent
B) 10.05 percent
C) 9.16 percent
D) 10.56 percent
E) 9.96 percent
Correct Answer:
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