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What is the market predicting for the yield on four-year

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Reference no: EM132948836

Problem 1: What is the market predicting for the yield on four-year Government of Canada bonds, two years from today, given that the yield on two-year Government of Canada bonds is currently 3.25% and the yield on six-year Government of Canada bonds is currently 4.90%?

Multiple Choice

Option 1: 2.85%
Option 2: 3.28%
Option 3: 4.25%
Option 4: 5.73%

Reference no: EM132948836

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