Suppose That All Investors Expect That Interest Rates for the 4

question 37

Multiple Choice

Suppose that all investors expect that interest rates for the 4 years will be as follows: $\begin{array}{lr}& \text { Forward } \\\text { Year } & \text { Interest Rate } \\\hline 0 & \text { (today) } 6 \% \\1 & 7 \% \\2 & 9 \% \\3 & 10 \%\end{array}$ What is the price of a 3-year zero-coupon bond with a par value of $1,000?

• A) $863.83
• B) $816.58
• C) $772.18
• D) $765.55
• E) None of the options are correct.

---

Definitions:

Artistic Effects

Artistic Effects are digital filters in graphic design software that transform images or text into stylized graphics simulating traditional artistic techniques.

Placeholder

An element used in digital and print design that holds a space for content that is yet to be added or finalized.

Copying and Pasting

The process of duplicating content from one location and inserting it into another within digital documents or files.

Empty Shapes

Graphic elements or outlines without fill or content, typically used in designs or diagrams.