Calculate the Price at the Beginning of Year 1 of Rate

question 43

Multiple Choice

$\begin{array}{cc}\text { Year } & \text { 1 Year Forward Rate } \\1 & 4.5\% \\2 & 5.2\% \\3 & 5.9\% \\4 & 6.3\% \\5 & 6.8 \% \\6 & 7.0\%\end{array}$
Calculate the price at the beginning of year 1 of a 10% annual coupon bond with face value $1,000 and 5 years to maturity.

• A) $1,195
• B) $1,181
• C) $1,175
• D) $1,162
• E) $1,151

---

Definitions:

Shared Values

Common beliefs and principles that guide the behavior of members within an organization or community, strengthening group cohesion.

Inter-Organizational Conflict

Disputes or disagreements that arise between different organizations or enterprises.

Counterculture Organization

A counterculture organization refers to a group or structure which operates with values and practices that are markedly different from those of the mainstream society or predominant organizational cultures.

Subculture Dominated Organization

An organization where the dominant culture is overshadowed by stronger subcultures within its structure.