Multiple Choice
The main difference between the "short-form" and "forward" methods of pricing a floating-rate note is:
A) The short-form method gives lower prices than the forward method.
B) The short-form method gives higher prices than the forward method.
C) The short-form method does not require knowledge of the entire forward term structure of interest rates.
D) The short-form method does not use the entire forward term structure of interest rates and hence results in less accurate prices.
Correct Answer:

Verified
Correct Answer:
Verified
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