Which One of the Following Is Defined as a Forward

question 38

Multiple Choice

Which one of the following is defined as a forward rate?

• A)rate agreed upon today for a long-term loan
• B)interest rate quoted today which will apply to all loans made this week
• C)interest rate on a loan made today that will vary as the market rate varies
• D)interest rate adjusted for the anticipated rate of inflation
• E)expected future interest rate implied by current interest rates

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