Suppose the Current 7 Year Rate Is 8% and the Current

question 105

Multiple Choice

Suppose the current 7 year rate is 8% and the current 6 year rate is 6%.What is the one year forward rate for six years?

• A) 16.33%
• B) 18.22%
• C) 20.82%
• D) 14.65%
• E) 15.14%

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Definitions:

Office Equipment

Office equipment includes items such as computers, desks, chairs, and other machinery or furnishings used in an office setting to enable employees to conduct their work.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Accrued Revenues

Revenues that have been earned but not yet received in cash or recorded at the statement date.

Current Liabilities

Short-term financial obligations due within one year, including accounts payable, short-term debt, and other accrued liabilities.