Use the Table for the Question(s)below

question 106

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 5 (the forward rate quoted today for an investment that begins in four years and matures in five years) is closest to:

• A)4.0%.
• B)3.8%.
• C)4.8%.
• D)4.2%.

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Definitions:

Transfer Price

The cost at which products and services are exchanged between departments within the same corporation.

Pool Products Division

Could represent a specific business segment within a company focused on producing or selling products related to swimming pools and related activities.

Transfer Price

The price at which goods and services are sold between divisions within the same company.

Transfer Price

The price charged for goods or services transferred between departments or subsidiaries of the same company.