Find the Fixed Rate on a Forward Swap Expiring in 90

question 14

Multiple Choice

Find the fixed rate on a forward swap expiring in 90 days in which the underlying swap has a maturity of 180 days and makes payments every 90 days.The prices of zero coupon bonds are 0.9877 (90 days) ,0.9732 (180 days) ,and 0.9597 (270 days) .

• A)5.97 percent
• B)5.6 percent
• C)5.5 percent
• D)5.78 percent
• E)5 percent

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Definitions:

Explicit Bias

Refers to the attitudes and beliefs we have about a person or group on a conscious level.

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over those of other groups.

Ingroup Bias

The tendency for people to give preferential treatment to others they perceive to be members of their own groups.

Just-world Phenomenon

The cognitive bias to believe that the world is inherently fair and that all individuals get what they deserve, leading to rationalizations of injustice.