The Price of a Bond That Matures in 1 Year

question 3

Multiple Choice

The price of a bond that matures in 1 year is 103.34,using base 100 pricing.The price of a bond that matures in two years is 101.90,using base 100 pricing.What is the 1-year bond forward price in year 1?

• A) 98.56
• B) 98.61
• C) 101.90
• D) 103.34

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Definitions:

Behavioural Approach

A theoretical perspective focusing on observable behaviors and the ways in which they're learned from the environment.

Psychology Professor

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Retrospective Memory

The ability to remember events that have occurred in the past or previously learned information.

Instructor

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