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Basic Question 0 of 8
The real risk-free rate is 0.75%. Average inflation over the next year is 2%. Investors require 1.5% for future inflation uncertainty. What would be the price of a default-free bond with a face value of $1,000 and one full year to maturity?
B. $973
C. $959
A. $988
B. $973
C. $959
User Contributed Comments 1
| User | Comment |
|---|---|
| davidt87 | feel like its worth stating that it's a zero-coupon bond |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
describe supervised machine learning algorithms - including penalized regression, support vector machine, k-nearest neighbor, classification and regression tree, ensemble learning, and random forest - and determine the problems for which they are best suited;
CFA® 2025 Level II Curriculum, Volume 1, Module 6.