Question 17 1 pts One-, two-and three-year maturity, default-free, zero-coupon bonds have yields-to-maturity of 1%, 1.10% and 1.25% respectively. What is the implied one-year forward rate, two years from today? O 1.40%. O 1.45%. O 1.35% O 1.50%. O 1.55% V Question 18 1 pts You own a bond which has a Macauley duration of 6 years and semi-annual coupons. Market interest rates on bonds of this type are currently 5% but you believe the Reserve Bank is about to decrease interest rates by 10 basis points. Your predicted price change on this bond is O +0.60% 0 -0.57% 0 +0.59% O +0.57% 0 -0.58% Question 19 1 pts The promised yield to maturity on a bond is I. above the coupon rate when the bond sells at a premium, and below the coupon rate when the bond sells at a discount. II. the discount rate that will set the present value of the payments received from the issuer equal to the bond price. III. equal to the true compound return on the investment in the bond only if all interest payments received are reinvested at the yield to maturity. O ll only. O I, II and III. I and II only. Il and Ill only. O I only. Question 20 1 pts Evidence that a stock-market index has a resistance level of 6,000 might best be attributed to herding effects. mental accounting. representativeness bias. anchoring bias. availability bias