Find $\lim _ { t \rightarrow 6 } \frac { t ^ { 3 } - 216 } { t - 6 }$

question 21

Multiple Choice

Find $\lim _ { t \rightarrow 6 } \frac { t ^ { 3 } - 216 } { t - 6 }$ .

• A)18
• B)72
• C)108
• D)6
• E)limit does not exist

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Definitions:

Expectations Theory

A theory related to interest rates stating that the long-term interest rates are geometric averages of present and future short-term interest rates, reflecting market assumptions about future rates.

Forward Rate

The agreed-upon interest rate for a financial transaction that will occur at a future date, often used in the context of foreign exchange or interest rates.

Zero-Coupon Bonds

Bonds that do not pay periodic interest, instead being sold at a discount and maturing at face value, offering a profit at redemption.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all payments of principal and interest at expected times.