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You observe an upward sloping term structure of spot interest rates. If you buy a 5-year zero coupon bond today, hold it for a year
You observe an upward sloping term structure of spot interest rates. If you buy a 5-year zero coupon bond today, hold it for a year and interest rates by maturity do not move, will your return be greater, the same as or less than the 5-year spot rate? Please explain briefly.
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