Which economic measure is most highly correlated with $10-$year nominal interest rates across countries and over time? Consider OECD countries from $1945$ to the present.

Real economic growth expectations

Inflation expectations

Government debt$-$to$-$income ratios

Net corporate bond issuance $7$ GDP

None of the above is related to interest rates

A CFO is managing money intended for a planned corporate investment in three years. She must decide how to allocate corporate funds in this three$-$year waiting period. Her goal is to reduce uncertainty in the value of the funds three years from now. Which of the following bond investments best meets this goal without sacrificing yield?

Suppose the yield curve is currently flat at $3\%.$ Suppose she will roll over $($i$.$e$,$ reinvest$)$ income and principal payments into analogous newly issued bonds and liquidate all positions in three years.

One$-$month Treasury bills

$3-$year $0\%-$coupon Treasury notes

$3-$year $5\%-$coupon Treasury notes

$10-$year $3\%-$coupon Treasury notes

All of these investments have substantial uncertainty in three years