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What Is the Yield to Maturity of a 2-Year Bond

Question 30

Multiple Choice

What is the yield to maturity of a 2-year bond?  1-Year  Forward  Year  Rate 14.6%24.9%35.2%45.5%56.8%\begin{array}{lr}&\text { 1-Year } \\&\text { Forward }\\\text { Year } & \text { Rate } \\1 & 4.6 \% \\2 & 4.9 \% \\3 & 5.2 \% \\4 & 5.5 \% \\5 & 6.8 \%\end{array}


A) 4.6%
B) 4.9%
C) 5.2%
D) 4.7%
E) 5.8%

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