Use the Following Information to Answer the Question(s)below

question 22

Multiple Choice

Use the following information to answer the question(s) below.
Suppose the current zero-coupon yield curve for risk-free bonds is as follows:
-The price per $100 face value of a four-year,zero-coupon,risk-free bond is closest to:

• A)$90.06.
• B)$89.16.
• C)$86.39.
• D)$84.66.

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Definitions:

Slope

The measure of the steepness or incline of a line, indicating the rate at which values increase or decrease.

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A chronic condition characterized by elevated levels of blood glucose (sugar) due to the body's inability to produce or effectively use insulin.

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A medical condition characterized by excessive body fat accumulation, which can lead to various health issues and decreased life expectancy.

Simple Linear Regression

A statistical method for understanding the relationship between two quantitative variables -- one predictor (independent variable) and one response (dependent variable) by fitting a linear equation.