Use the Table for the Question(s)below

question 106

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 5 (the forward rate quoted today for an investment that begins in four years and matures in five years) is closest to:

• A)4.0%.
• B)3.8%.
• C)4.8%.
• D)4.2%.

---

Definitions:

Suffix

A morpheme that is attached to the end of a word to create a derivative or alter its grammatical role.

Concur

To agree or have the same opinion.

Suffix

A morpheme added at the end of a word to alter its meaning or grammatical function, such as "-ness" or "-ly".

Fly

In the context of an organism, a fly is a small winged insect belonging to the order Diptera; known for its ability to fly quickly.