Assume That the Following Data on U

question 40

Multiple Choice

Assume that the following data on U.S. Treasury securities is current:
-Refer to the information above. What is the implied interest rate on a one-year Treasury issued two years from today?

• A)2.15%
• B)4.34%
• C)0.00%
• D)0.96%

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Definitions:

Tchebysheff's Theorem

A statistical theorem that provides a bound on the probability that the value of a random variable deviates from its mean by more than a certain multiple of its standard deviation.

Standard Deviations

Measures the amount of variation or dispersion from the mean in a set of data points.

Empirical Rule

A statistical rule stating that for a normal distribution, nearly all data will fall within three standard deviations (denoted as sigma) of the mean.

Numerical Descriptive Measures

Statistics that quantitatively describe or summarize features of a collection of information, such as mean, median, mode, and range.