Use the Table for the Question(s)below

question 8

Multiple Choice

Use the table for the question(s) below.
Consider the following zero-coupon yields on default-free securities:
-The forward rate for year 4 (the forward rate quoted today for an investment that begins in three years and matures in four years) is closest to:

• A)4.5%.
• B)4.6%.
• C)4.4%.
• D)5.0%.

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Definitions:

Discrimination Learning

The process of learning to respond differently to various stimuli, distinguishing between those that are rewarded and those that are not.

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus to which the response was originally conditioned.

Second-order Conditioning

A form of learning where a stimulus that initially had no significance becomes conditioned as a result of being paired with another stimulus that already induces a conditioned response.

Contiguous

Contiguous means sharing a common border or being in direct contact with something, indicating physical proximity or adjacency.