If There Is a One-Year Spot Rate of 6% and Two-Year

question 1

Multiple Choice

If there is a one-year spot rate of 6% and two-year spot rate of 8%, the forward rate from year 1 to 2 is

• A) 9.06%.
• B) 9.72%.
• C) 8.12%.
• D) 10.04%.

Understand the concept of tail recursion.

Recognize the consequences of infinite recursion and how to avoid it.

Calculate the results of simple recursive methods.

Compare iterative and recursive approaches in terms of overhead and efficiency.

---

Definitions:

Restrictive Endorsement

A limitation placed on a check specifying the conditions under which it can be endorsed.

Special Endorsement

A banking term referring to a notation on a check or other negotiable instrument that specifies the conditions under which it can be redeemed or transferred.

Qualified Endorsement

A legal notation on a negotiable instrument, such as a check, restricting the conditions under which it can be further negotiated.

Statement of Income and Expense

is a financial report that summarizes the revenue, costs, and expenses incurred during a specific period.