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The__________ Takes into Account the Effects of Compounding; It Is

Question 55

Multiple Choice

The__________ takes into account the effects of compounding; it is used to calculate the long-term rate from the short rate and the short-term rates expected to prevail over the term to maturity of the long-term security.


A) marginal average rate
B) marginal rate
C) average marginal rate
D) geometric average

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