Suppose the current yield on a​ one-year zero-coupon bond is 4%, while the yield on a​ five-year zero-coupon bond is 6% Neither bond has any risk of default. Suppose you plan to invest for one year. You will earn more over the year by investing in the​ five-year bond as long as its yield does not rise above what​ level? ​ (Assume $1 face value​ bond.) ​Hint: It is best not to round intermediate calculationsmake sure to carry at least four decimal places in intermediate calculations.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Nucleus

The correct answer is step.