Use the Table for the Question(s)below

question 21

Multiple Choice

Use the table for the question(s) below.
Consider the following zero-coupon yields on default-free securities:
-The forward rate for year 2 (the forward rate quoted today for an investment that begins in one year and matures in two years) is closest to:

• A)5.80%.
• B)5.50%.
• C)5.20%.
• D)5.65%.

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Definitions:

Avoidance

Avoidance is a strategy or behavior aimed at sidestepping or evading certain situations, conflicts, or responsibilities.

Strategy

An approach devised for the purpose of achieving a long-term or primary aim.

Tactics

Carefully planned strategies or maneuvers intended to achieve a specific end, often used in contexts of negotiation, conflict resolution, or competitive situations.

Strategy

A comprehensive plan or set of actions designed to achieve specific goals.