The Yield Curve Is Flat at 6% Per Annum

question 2

Multiple Choice

The yield curve is flat at 6% per annum.What is the value of an FRA where the holder receives interest at the rate of 8% per annum for a six-month period on a principal of $1,000 starting in two years? All rates are compounded semiannually.

• A) $9.12
• B) $9.02
• C) $8.88
• D) $8.63

---

Definitions:

Interpersonal Relationships

The connections and interactions between two or more people, which can impact various aspects of the workplace, including communication, teamwork, and morale.

Attitudes

A predisposition or tendency to respond positively or negatively towards a certain idea, object, person, or situation.

Interpersonal Distance

The physical or psychological space maintained between individuals during interactions, which can influence communication and social dynamics.

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.