Due to a recent increase in demand for new insurance products, the number of life insurance companies as been increasing in the United States.

A one-year zero-coupon bond yields 4.0%. The two- and three-year zero-coupon bonds yield 5.0% and 6.0% respectively. The one-year spot rate r(1) = 5% and the forward price for a one-year zero-coupon bond beginning in one year is 0.9346. The spot price of a two-year zero-coupon bond is closest to:

A. 0.87. B. 0.89. C. 0.93.

Why does the Federal Arbitration Act (FAA) want to limit a court's power over an arbitration award?

What will be an ideal response?