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Assume the following yields for US Treasuries 1 year 2%, 3 year 2.5%, 5 year 3.25%, 10 year 5%, 30 year 6%. BB bonds are

Assume the following yields for US Treasuries 1 year 2%, 3 year 2.5%, 5 year 3.25%, 10 year 5%, 30 year 6%. BB bonds are currently trading at a 200bps premium to Treasuries. What is the yield of a 10 year BB bond based on the yield curve? Report your answer in basis points (i.e. 2% = 200bps). *

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