Given the Yield on a 3 Year Zero-Coupon Bond Is

question 35

Multiple Choice

Given the yield on a 3 year zero-coupon bond is 7.2% and forward rates of 6.1% in year 1 and 6.9% in year 2, what must be the forward rate in year 3

• A)8.4%
• B)8.6%
• C)8.1%
• D)8.9%
• E)None of the options

---

Definitions:

Socioeconomic Status

The social standing or class of an individual or group, often measured by education, income, and occupation.

Interactional Synchrony

The harmonious matching or coordination of behaviors, actions, or emotions between individuals during interactions.

Investigative Interview

A structured interview technique used primarily in legal and forensic contexts to gather information or evidence without leading or influencing the interviewee.

Ecological Validity

How much research study outcomes can be applied to real-life scenarios.