The Annualized Yield on a Three-Year Security Is 13 Percent;

question 25

Multiple Choice

The annualized yield on a three-year security is 13 percent; the annualized two-year interest rate is 12 percent, while the one-year interest rate is 9 percent. The forward rate two years aheadis ____ percent.

• A) 1.8
• B) 9
• C) 15
• D) none of the above

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Definitions:

Detritivores

Organisms that feed on dead organic material, particularly plant detritus, playing a crucial role in nutrient recycling.

Omnivores

Organisms that consume both plant and animal matter as part of their diet.

Carnivores

Animals that feed on other animals.

Biogeochemical Cycle

Circulating pathway of elements, such as carbon and nitrogen, involving exchange pools, storage areas, and biotic communities.