$\begin{array}{cc}\text { Year } & \text { 1-Year Forward Rate } \\1 & 4.6\% \\2 &4.9\% \\3 & 5.2\% \\4 & 5.5\% \\5 &6.8\%\end{array}$

question 3

Multiple Choice

$\begin{array}{cc}\text { Year } & \text { 1-Year Forward Rate } \\1 & 4.6\% \\2 &4.9\% \\3 & 5.2\% \\4 & 5.5\% \\5 &6.8\%\end{array}$ What should the purchase price of a 1-year zero-coupon bond be if it is purchased today and has face value of $1,000?

• A) $966.37
• B) $912.87
• C) $950.21
• D) $956.02
• E) $945.51

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Definitions:

Continuing-Care Community

A type of retirement community that offers different levels of care (independent living, assisted living, nursing care) within the same facility or campus.

Lifelong Needs Establishment

The process of identifying and meeting the diverse and changing needs of individuals throughout their entire lives.

Medical Care

The services provided by professionals to diagnose, treat, and prevent illness and maintain physical and mental well-being.

Live in Poverty

The state of experiencing a lack of financial resources below a certain income threshold, affecting an individual's or family's ability to meet basic needs.