The Following Information Relates to Questions 16-29

question 19

Multiple Choice

The following information relates to Questions 16-29

-The one-year spot rate r(1) = 5% and the forward price for a one-year zero-coupon bond beginning in one year is 0.9346. The spot price of a two-year zero-coupon bond is closest to:

• A) 0.87.
• B) 0.89.
• C) 0.93.

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Definitions:

Puckering

The act of contracting or gathering into wrinkles or folds, often referring to the lips.

Saliva

A clear liquid secreted by the salivary glands in the mouth, important for digestion and maintaining oral health.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which they're learned, often through conditioning, without reference to mental processes.

Conditioning

A basic kind of learning that involves associations among environmental stimuli and an organism’s behavior.