If 1-Year Interest Rates for the Next Five Years Are

question 104

Multiple Choice

If 1-year interest rates for the next five years are expected to be 4,2,5,4,and 5 percent,and the 5-year term premium is 1 percent,than the 5-year bond rate will be

• A)2 percent.
• B)3 percent.
• C)4 percent.
• D)5 percent.

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Definitions:

Combine

To bring two or more elements together to form a whole or to unite different elements in a mixture or combination.

Nocturnal

Describing organisms that are active during the night and rest during the day.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and are crucial for night vision.

Visual System

The part of the central nervous system which enables organisms to process visual detail, and includes the eye, the optic nerves, and the brain's visual cortex.