Suppose a Security with a Risk-Free Cash Flow of $1000

question 80

Multiple Choice

Suppose a security with a risk-free cash flow of $1000 in one year trades for $909 today.If there are no arbitrage opportunities,then the current risk-free interest rate is closest to:

• A)8%
• B)10%
• C)11%
• D)12%

---

Definitions:

Extrinsic Rewards

Extrinsic Rewards are external incentives given to employees, such as pay raises, bonuses, and recognition, to motivate performance.

Task Identity

The degree to which a job involves completing a whole and identifiable piece of work from start to finish with a visible outcome.

Job Satisfaction

The level of contentment employees feel about their work, which can influence their motivation, performance, and retention.

Contingent Time Off

Time off from work that is not planned in advance and depends on certain conditions being met.