One-, Two-, and Three-Year Maturity, Default-Free, Zero-Coupon Bonds Have Yields

question 45

Multiple Choice

One-, two-, and three-year maturity, default-free, zero-coupon bonds have yields to maturity of 7%, 8%, and 9%, respectively. What is the implied 1-year forward rate 1 year from today?

• A) 2.07%
• B) 8.03%
• C) 9.01%
• D) 11.12%

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The act of highlighting one's own skills, achievements, or qualities, often to advance personal or professional goals.

Intimidation

The act of making others afraid or overawed, especially in order to influence their behavior or decisions.

Self-defeating Behavior

Actions or patterns of behavior that undermine one’s own success or well-being, often subconsciously.

Desire

A strong feeling of wanting or wishing for something to happen or to possess something.