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

question 28

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 3-year zero-coupon bond be if it is purchased today and has face value of $1,000?

• A) $887.42
• B) $871.12
• C) $879.54
• D) $856.02
• E) $866.32

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Definitions:

Gout

A form of inflammatory arthritis characterized by recurrent attacks of a red, tender, hot, and swollen joint, caused by elevated levels of uric acid in the blood.

Osgood-Schlatter Disease

A condition causing pain and swelling below the knee due to inflammation of the area where the patellar tendon attaches to the tibia.

Patellar Tendon

The tendon that connects the patella (kneecap) to the shin bone, important for knee extension.

Arthroscopic Surgery

A minimally invasive surgical procedure on a joint in which an examination and sometimes treatment of damage is performed using an arthroscope.