A $100 Face Value One-Year Risk-Free Discount Bond Is Priced

question 5

Multiple Choice

A $100 face value one-year risk-free discount bond is priced at $95.The two-year discount bond is priced at $90.After one year,the two-year bond will take one of three equiprobable prices,spaced $5 apart.The middle value of these possible prices is

• A)$90.25
• B)$94.75
• C)$95.00
• D)$100.00

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Definitions:

Qualitative Methods

Research methods that collect and analyze non-numerical data to understand concepts, opinions, or experiences.

'Etic' Analyses

Research strategies in anthropology and cross-cultural psychology that emphasize the etic, or outsider’s perspective, focusing on cross-cultural comparisons.

'Emic' Analyses

Cultural studies or analyses that are conducted from within the cultural group, using concepts and categories that are meaningful and relevant to the group itself.

Cross-Cultural Analyses

Comparing and contrasting behaviors, customs, norms, and values across different societies or cultures to understand human behavior in a broader context.