The "Break-Even" Interest Rate for Year N That Equates the Return

Multiple Choice

The "break-even" interest rate for year n that equates the return on an n-period zero-coupon bond to that of an n-1-period zero-coupon bond rolled over into a one-year bond in year n is defined as

A) the forward rate.
B) the short rate.
C) the yield to maturity.
D) the discount rate.
E) None of the above.