Based on the Table of Zero Coupon Bond Prices, Below

question 29

Multiple Choice

Based on the table of zero coupon bond prices, below, what is the shape of the yield curve? Each bond has a face value of $100. $$\begin{array} { | c | c | } \hline \text { Maturity } & \text { Price } \\\hline 1 & 95.24 \\\hline 2 & 90.70 \\\hline 3 & 86.38 \\\hline 4 & 82.27 \\\hline\end{array}$$

• A)Flat
• B)Upward sloping
• C)Downward sloping
• D)Not enough information

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Definitions:

Independent Variable

A variable in research that is manipulated or categorized to observe its effect on a dependent variable.

First Quartile

The value below which 25% of the data falls.

Ages of Retirees

Statistical data referring to the range, mean, or distribution of ages at which individuals retire from their professional careers.

Uninsured Retirees

Individuals who are retired and lack health insurance coverage.