Given the interest rate component information below determin

Given the interest rate component information below, determine the yield on a 5 year, A-rated bond.

Show in percent to one decimal point without the percent sign. e.g. 3.1% would be 3.1

Solution

the yield on a 5 year, A-rated bond = 1.4% + 4.5% + 2.0% + 1.3%

the yield on a 5 year, A-rated bond = 9.20%