Multiple Choice
The annualized yield on a three-year security is 13 percent; the annualized two-year interest rate is 12 percent, while the one-year interest rate is 9 percent. The forward rate one year ahead is ____ percent.
A) 2.8
B) 115
C) 103
D) 15.1
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q69: In general, securities with _ characteristics will
Q70: The term structure of interest rates defines
Q71: If liquidity influences the yield curve, but
Q72: An upward-sloping yield curve indicates that Treasury
Q73: Treasury securities are exempt from federal and
Q75: The yield curve in a foreign country
Q76: Assume the yield curve is flat. If
Q77: If the liquidity premium exists, a flat
Q78: The higher a bond rating, the lower
Q79: Bonds issued at different times by the