The Annualized Yield on a Three-Year Security Is 13 Percent;

question 20

Multiple Choice

The annualized yield on a three-year security is 13 percent; the annualized two-year interest rate is 12 percent, while the one-year interest rate is 9 percent. The forward rate two years ahead is ____ percent.

• A)1.8
• B)9.0
• C)15.0
• D)none of the above

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Definitions:

Single-Parent Household

A household in which one parent is responsible for raising child(ren) without the presence of a spouse or partner.

Family Function

The roles and operations within a family unit, including emotional support, socioeconomic provision, and upbringing of children.

Household Members

Individuals who occupy the same residential unit and share living arrangements, which may or may not be related by blood or marriage.

Physical Custody

A legal term referring to with whom a child lives and the arrangements for taking care of the child's daily needs.