Which of the Following Equations Is INCORRECT

question 50

Multiple Choice

Which of the following equations is INCORRECT?

• A)Expected future spot interest rate = forward interest rate + risk premium
• B)(1 + f1)× (1 + f2)× (1 + f3)× ...× (1 + fn)= (1 + YTMn)n
• C)fn = - 1
• D)(1 + YTMn)n = (1 + YTMn - 1)n - 1(1 + fn)

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