Use the Figure for the Question(s) Below

question 12

Multiple Choice

Use the figure for the question(s) below.
-The current zero-coupon yield curve for risk-free bonds is shown above. What is the price of a zero-coupon, four-year, risk-free bond of $100?

• A) $85.64
• B) $87.99
• C) $92.15
• D) $96.67

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Definitions:

Sleeper Effects

The detrimental effects of early-life adversity that occur only later in development.

Early-Life Adversity

Profound and pervasive deprivation experienced during infancy, often resulting in severe developmental delays.

Brain Stem

The base of the brain, which controls such elementary reactions as blinking and sucking, as well as such vital functions as breathing and sleeping.

Developmental Surge

Refers to periods of rapid growth or advancement in physical, cognitive, or emotional development during childhood or adolescence.