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

question 77

Multiple Choice

Suppose that a security with a risk-free cash flow of $1000 in one year trades for $930 today.If there are no arbitrage opportunities,then the current risk-free rate is closest to:

• A)6.0%
• B)6.5%
• C)7.0%
• D)7.5%

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Definitions:

Parietal Lobe

The region of the brain that processes sensory information such as touch, temperature, and pain, and is involved in spatial orientation and manipulation.

Temperature

A physical quantity expressing the subjective perceptions of hot and cold, measured with a thermometer.

Facial Recognition

The process by which individuals are identified or verified through the analysis of facial features.

Emotional Information

Data pertaining to an individual's feelings, moods, and affective states, often used in psychological studies and applications.