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Why is it unusual for yields on longer term

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Reference no: EM13148383

suppose the yield to maturity on a 2 year treasury note was 4.5 while the yield on a 1 year not was 5.5 assume that neither treasury note had coupon payments so the only payment was he face value received when the note matured. why is it unusual for yields on longer term notes to be lower than yields on shorter term notes? why would any investor buy the 2 year note (instead of the 1 year) given its lower yield?

Reference no: EM13148383

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