The Following Information Relates to Questions All Rates Are Annual Rates Stated for a Periodicity of }

question 28

Multiple Choice

The following information relates to Questions
$\begin{array} { l c } \text { Time Period } & \text { Forward Rate } \\\hline \text { "0y1y" } & 0.80 \% \\\text { "1y1y" } & 1.12 \% \\\text { "2y1y" } & 3.94 \% \\\text { "3yly" } & 3.28 \% \\\text { "4yly" } & 3.14 \% \\\hline\end{array}$
All rates are annual rates stated for a periodicity of one (effective annual rates) .
-The value per 100 of par value of a two-year, 3.5% coupon bond, with interest payments paid annually, is closest to:

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Definitions:

Monetary Policy

Measures undertaken by a government's central bank to regulate the economy's money supply and interest rates to achieve macroeconomic objectives like controlling inflation, consumption, growth, and liquidity.

President

The head of state and government in a republic, often elected to lead the executive branch and uphold the laws and constitution of the nation.

Monetary Policy

Actions undertaken by a central bank, such as managing interest rates and controlling the money supply, to influence economic activity.

Federal Reserve

The Federal Reserve is the central bank of the United States, tasked with overseeing national monetary policy, regulating banks, maintaining financial stability, and providing financial services.