Which of the Following Statements Is True

question 34

Multiple Choice

Which of the following statements is true?
I. The spot interest rate is a weighted average of yields to maturity
II. Yield to maturity is the weighted average of spot interest rates and estimated forward rates
III. The yield to maturity is always higher than the spot rates

• A) I only
• B) II only
• C) III only
• D) I and III only

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Definitions:

Abate

Means to become less intense or widespread, typically referring to something perceived as hostile, threatening, or negative.

Confrontation

A direct encounter or dispute between individuals or groups over differing views, beliefs, or interests, potentially leading to a resolution or escalation of tensions.

Formal Style

A mode of communication or presentation that is structured, follows established conventions, and is often used in professional or official contexts.

Mutual Survival

Is the concept that individuals or entities work together in cooperation, recognizing that their interests are interdependent and that their long-term survival benefits from common efforts.