If 1-Year Interest Rates for the Next Three Years Are

question 79

Multiple Choice

If 1-year interest rates for the next three years are expected to be 4,2,and 3 percent,and the 3-year term premium is 1 percent,than the 3-year bond rate will be

• A) 1 percent.
• B) 2 percent.
• C) 3 percent.
• D) 4 percent.

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Definitions:

Innovator

A person or organization that introduces new ideas, products, or methods, often driving change and progress within a market or industry.

Self-Designated Method

A technique or approach where individuals select or designate themselves for participation in a process or study.

Sociometry

A quantitative method for measuring social relationships, often used to explore the structure of groups and to analyze choices or preferences within those groups.

Homophily

The tendency for people to form connections with others who are similar to them in characteristics such as beliefs, values, and social status.