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

question 16

Multiple Choice

Given the yield on a 3 year zero-coupon bond is 7% and forward rates of 6% in year 1 and 6.5% in year 2,what must be the forward rate in year 3?

• A)7.2%
• B)8.6%
• C)8.5%
• D)6.9%
• E)none of the above.

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Definitions:

Language Acquisition Device

A theoretical construct in the field of linguistics that suggests an innate ability of humans to acquire language.

Noam Chomsky

Noam Chomsky is a renowned linguist, philosopher, and cognitive scientist known for his theory of generative grammar, which has had a profound impact on the study of language.

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A concept introduced by Lev Vygotsky that describes the difference between what a learner can do without help and what he or she can achieve with guidance and encouragement from a skilled partner.

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