ECON-2819 Final: Final Exam Practice #2
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______--. --. ---__ : bhattacharyya/ l. elkow/ g. jacoby/ l. longobartli. Note: it is your responsibility to verify that this examination has 15 pages: multiple c. hoice section. 1s;lch nf the following questions or statements is followed by several suggested answers or completions. Select the best alternative and place the corresponding letter on the. ;icconlp:lnying computerized answer sheet. (value: 12 x 2. 5 = 30 marks) ; the l ollowing information applies to questions i and 2. Spot rates of interest for zero-coupon government of canada bonds are observed for different terms to maturity as follows: a ~~ iwji~i~i~ii bond has a face value of ,000 and matures 4 years from today. If" you believe in the pure expectations theory of the term structure, what do you expect the price of. Your broker has recommended that you buy the stock of a new company.