Suppose That All Investors Expect That Interest Rates for the 4

question 31

Multiple Choice

Suppose that all investors expect that interest rates for the 4 years will be as follows: $\begin{array}{lc}\text { Year } & \text { Forward Interest Rate } \\0 & \text { (today) } 3\% \\1 & 4\% \\2 & 5\% \\3 & 6\%\end{array}$
What is the price of a 2-year maturity bond with a 5% coupon rate paid annually? (Par value = $1,000.)

• A) $1,092.97
• B) $1,054.24
• C) $1,028.50
• D) $1,073.34
• E) None of the options are correct.

Recognize the importance of catalysts in achieving chemical equilibrium and influencing reaction rates without being consumed.

Understand the principles and legal consequences of dividing agreements into legal and illegal parts.

Recognize the impact of enforcing agreements that violate statutes and the legislative intent behind statutory prohibitions.

Distinguish between regulatory statutes and revenue-raising statutes and their implications for licensing and the enforceability of contracts.