A Two-Year STRIPS Sells at an Interest Rate of 3

question 78

Multiple Choice

A two-year STRIPS sells at an interest rate of 3.84 percent and a three-year STRIPS sells at a rate of 3.97 percent.What is the implied one year interest rate two years from now? Assume the rates are effective annual rates.

• A) 4.23 percent
• B) 4.36 percent
• C) 4.41 percent
• D) 4.45 percent
• E) 4.50 percent

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Definitions:

Fraudulent Billing

The act of intentionally billing for medical services that were not provided or billing for services at a higher rate than is appropriate.

Patient Records

Documents that contain a comprehensive history of a patient's medical background and treatment.

Dated

Indicative of a time that has passed or something outdated in style or technology.

Signature

A person's handwritten depiction of their name, or a unique mark representing themselves, used for authorization or agreement.