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The Following Represents Two Yield Curves

Question 10

Multiple Choice

The following represents two yield curves. The following represents two yield curves. What interest rate is expected on a one-year B-rated corporate bond in one year? (Hint: Use the implied forward rate.) A) 10.0 percent. B) 9.09 percent. C) 14.15 percent. D) 12.0 percent. E) 17.0 percent. What interest rate is expected on a one-year B-rated corporate bond in one year? (Hint: Use the implied forward rate.)


A) 10.0 percent.
B) 9.09 percent.
C) 14.15 percent.
D) 12.0 percent.
E) 17.0 percent.

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