A Four-Year,zero-Coupon Treasury Bond Sells at a Price of $762

question 11

Multiple Choice

A four-year,zero-coupon Treasury bond sells at a price of $762.8952.A three-year,zero-coupon Treasury bond sells at a price of $827.8491.Assuming the pure expectations theory is correct,what does the market believe the price of one-year,zero-coupon bonds will be in three years?

• A) $921.66
• B) $934.58
• C) $938.97
• D) $945.26
• E) $950.47

---

Definitions:

Metabolism

The set of chemical reactions that occur within a living organism to maintain life, involving the breakdown of substances to generate energy and the synthesis of substances necessary for life.

Nutrients

Essential compounds that organisms need to absorb from their surroundings or diet to support growth, reproduction, and health, including vitamins, minerals, proteins, fats, and carbohydrates.

Supplies Account

The Supplies Account is a record that tracks the costs of consumable items used by a business in its operations, which may include office supplies, small tools, and cleaning products.

Assets

Resources owned or controlled by a business or individual, which are expected to provide future economic benefits.