Chartered Financial Analyst Level 1
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An analyst gathers the following information for two bonds with similar credit quality:
- Bond 1: Time to Maturity = 3 years, Yield to Maturity = 3.4%
- Bond 2: Time to Maturity = 8 years, Yield to Maturity = 5.4%
Based on this data, the estimated market discount rate for a 5-year bond is closest to:
An analyst gathers the following information for two bonds with similar credit quality:
- Bond 1: Time to Maturity = 3 years, Yield to Maturity = 3.4%
- Bond 2: Time to Maturity = 8 years, Yield to Maturity = 5.4% Based on this data, the estimated market discount rate for a 5-year bond is closest to:
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