Zero-Coupon Bond Prices Are Given by B(0,T ),Where 0 Is

question 3

Multiple Choice

Zero-coupon bond prices are given by B(0,T ) ,where 0 is today,and T (measured in years) is the bond's maturity date.
-The spot rate f (0,0) and the forward rate f (0,1) are given by:

• A) 0.041667 and 0.042588
• B) 0.041667 and 0.043478
• C) 0.041667 and 0.042553
• D) 0.043478 and 0.045455
• E) None of these answers are correct.

---

Definitions:

Supply Curve

A visual diagram that illustrates the connection between the cost of a product and the amount of the product that sellers are prepared to make available for purchase.

Demand Curve

A graph illustrating how much of a good consumers will buy at different prices, showing the relationship between price and quantity demanded.

Good Sold

Items or services that have been purchased by consumers.

Tax on Sellers

A financial charge or levy imposed on product producers or sellers by the government, which often leads to the market price of the product increasing to cover the cost of the tax.