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Forward Rates ____________ Future Short Rates Because ____________

Question 26

Multiple Choice

Forward rates ____________ future short rates because ____________.


A) are equal to; they are both extracted from yields to maturity
B) are equal to; they are perfect forecasts
C) differ from; they are imperfect forecasts
D) differ from; forward rates are estimated from dealer quotes while future short rates are extracted from yields to maturity

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