Suppose That All Investors Expect That Interest Rates for the 4

question 47

Multiple Choice

Suppose that all investors expect that interest rates for the 4 years will be as follows: What is the price of 3-year zero-coupon bond with a par value of $1,000?

• A)$889.08
• B)$816.58
• C)$772.18
• D)$765.55

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Definitions:

Vas Deferens

The duct that conveys sperm from the testicle to the urethra.

Vasectomy

A male sterilization procedure in which a section of each vas deferens is removed.

Sperm

Male reproductive cells or gametes involved in sexual reproduction, which carries the genetic information from the male to fertilize the female's ovum.

Ovum

A female reproductive cell or egg cell that, once fertilized by a sperm, can develop into a zygote.