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:

Increase Annually

A repeated growth or rise in value or amount each year.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profits through dividends and/or capital appreciation.

Straight Voting

Procedure where a shareholder may cast all votes for each member of the board of directors.

Cumulative Voting

A voting system used in corporate elections that allows shareholders to allocate their votes in any manner they choose, often used to strengthen the voting power of minority shareholders.