According to the Expectations Theory, What Is the Expected Forward $\begin{array}{cc}\text { Maturity }\\\text { (Years) } & \text { Price } \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}$

question 17

Multiple Choice

According to the expectations theory, what is the expected forward rate in the third year? The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. $\begin{array}{cc}\text { Maturity }\\\text { (Years) } & \text { Price } \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}$

• A) 7.23%
• B) 9.37%
• C) 9.00%
• D) 10.9%

---

Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, by practicing sustainable development and ethical practices.

Performance Measure

A metric or indicator used to gauge the efficiency, effectiveness, or success of an organization's activities.

Manufacturing Capacity

The maximum volume of products that can be produced in a given period under normal working conditions.

Overall Equipment Effectiveness

A measure of manufacturing productivity that combines availability, performance, and quality metrics of equipment.