Financial Calculator Section
The following question(s) may require the use of a financial calculator.

A four-year, zero-coupon Treasury bond sells at a price of $762.8952. A three-year, zero-coupon Treasury bond sells at a price of $827.8491. Assuming the pure expectations theory is correct, what does the market believe the price of one-year, zero-coupon bonds will be in three years?

Which of the following statements about the Affordable Care Act is TRUE?

A) The health care law includes reforms to the affordability, availability, and quality of health insurance. B) The health care law was passed by state legislation and only exists in certain states. C) The Affordable Care Act is administered through Social Security. D) The law was created specifically to provide affordable care for senior citizens.

Which of the following is true regarding a regression model with multicollinearity, a high r2 value, and a low F-test significance level?

A) The model is not a good prediction model. B) The high value of r2 is due to the multicollinearity. C) The interpretation of the coefficients is valuable. D) The significance level tests for the coefficients are not valid. E) The significance level for the F-test is not valid.