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

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:

Recycling

The process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products.

Cognitive Overload

A state where the amount of information processing required exceeds the cognitive capacity of the individual, leading to decreased performance or understanding.

Mental Fatigue

A state of tiredness or exhaustion that originates from prolonged cognitive activity, reducing mental efficiency.

Shared Mental Model

A psychological representation of knowledge, beliefs, and expectations shared among members of a team or group, facilitating coordinated actions and communications.