$\begin{array}{cc}\text { Year } & \text { 1-Year Forward Rate } \\1 & 5\% \\2 & 5.5\% \\3 & 6.0\% \\4 & 6.5\% \\5 & 7.0\%\end{array}$

question 57

Multiple Choice

$\begin{array}{cc}\text { Year } & \text { 1-Year Forward Rate } \\1 & 5\% \\2 & 5.5\% \\3 & 6.0\% \\4 & 6.5\% \\5 & 7.0\%\end{array}$
What would the yield to maturity be on a four-year zero-coupon bond purchased today?

• A) 5.75%
• B) 6.30%
• C) 5.65%
• D) 5.25%

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Definitions:

Decision Rule

A guideline or criteria set for making choices among alternatives in a decision-making process.

Nonprogrammed Decision

Decisions made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

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Technology-enabled processes that allow individuals and teams to work together more effectively, often in real-time, regardless of physical location.

Stakeholder Audit

An assessment process to identify and evaluate the interest, power, and influence of various stakeholders in relation to an organization’s objectives.