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

question 64

Multiple Choice

$\begin{array}{cc}\text { Year } & \text { 1-Year Forward Rate } \\1 & 5\% \\2 & 5.5\% \\3 & 6.0\% \\4 & 6.5\% \\5 & 7.0\%\end{array}$
Calculate the price at the beginning of year 1 of an 8% annual coupon bond with face value $1,000 and 5 years to maturity.

• A) $1,105.47
• B) $1,131.91
• C) $1,084.35
• D) $1,150.01
• E) $719.75

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Definitions:

Initial Stage

The beginning phase of a process, project, or development, often characterized by planning, research, and setting objectives.

Organizational Change Efforts

Initiatives undertaken by an organization to improve its performance, adapt to market dynamics, or implement new strategies.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Percent

A part or other object per hundred, used in expressing proportions, fractions, or percentages.