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

question 1

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 should the purchase price of a 2-year zero-coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000?

• A) $877.54
• B) $888.33
• C) $883.32
• D) $894.21
• E) $871.80

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Definitions:

Class Analysis

The examination of the social and economic divisions within a society, particularly related to the distribution of wealth, economic status, and social influence.

Erik Olin Wright

An American sociologist known for his work on class structure, social stratification, and alternatives to capitalist economies.

Marx

Karl Marx, a 19th-century philosopher, economist, and socialist, known for his critique of capitalism and theory of historical materialism.

Class Analysis

The study of the social and economic divisions within society, particularly regarding social class and inequality.