What Would the Yield to Maturity Be on a Rate

question 61

Multiple Choice

$\begin{array}{cc}\text { Year } & \text { 1 Year Forward Rate } \\1 & 4.5\% \\2 & 5.2\% \\3 & 5.9\% \\4 & 6.3\% \\5 & 6.8 \% \\6 & 7.0\%\end{array}$
. What would the yield to maturity be on a four-year zero-coupon bond purchased today?

• A) 7.80%
• B) 6.30%
• C) 5.47%
• D) 4.25%
• E) None of the options are correct.

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Definitions:

Parameters

A set of boundaries or limits that define the scope and operating conditions of a system, project, or experiment.

Earned Value Management

A project management technique that integrates scope, time, and cost data to assess project performance and progress.

Time-Consuming Estimating Method

A method of estimating that requires a significant amount of time to analyze and calculate, often due to its complexity or detail.

Schedule Variance

A project management metric that compares the amount of work performed against the work scheduled.