Multiple Choice
Which of the following statements is true?
I. The spot interest rate is a weighted average of yields to maturity
II. Yield to maturity is the weighted average of spot interest rates and estimated forward rates
III. The yield to maturity is always higher than the spot rates
A) I only
B) II only
C) III only
D) I and III only
Correct Answer:
Verified
Correct Answer:
Verified
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