Zero-Coupon Bonds Maturing in 1,2,and 3 Years Have Prices of 0.9020,0.8320,and

question 13

Multiple Choice

Zero-coupon bonds maturing in 1,2,and 3 years have prices of 0.9020,0.8320,and 0.7620,respectively.What is the implied forward rate from year 2 to year 3?

• A) 7.94%
• B) 9.19%
• C) 09.68%
• D) 10.21%

---

Definitions:

Commit Suicide

The deliberate act of taking one's own life.

Murders Committed

The unlawful killing of one human by another, especially with premeditated malice.

Middle Class

A social group between the upper and working classes, including professional and business workers and their families.

Mass Murder

The act of killing four or more individuals at a single location and in a short period of time, typically without a cooling-off period between the murders.