Which of These Is the Expected or "Implied" Rate on a Short-Term

question 90

Multiple Choice

Which of these is the expected or "implied" rate on a short-term security that will originate at some point in the future?

• A) current yield
• B) forward rate
• C) spot rate
• D) yield to maturity

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Definitions:

Chronological Order

The arrangement of events, numbers, or actions in the sequence that they occurred or were performed.

Debit Normal

Refers to accounts that are increased with a debit transaction and have a natural debit balance, such as assets, expenses, and losses.

Credit Normal

The usual terms or conditions under which credit is extended to customers, including payment due dates and interest rates.

Sales Slip

A document that records the details of a transaction made between a buyer and a seller.