The Annualized Yield on a Two-Year Security Is Below the Annualized

question 10

Multiple Choice

The annualized yield on a two-year security is below the annualized one-year interest rate. The one-year forward rate as of one year ahead is ______________.

• A)zero
• B)negative
• C)positive, but below the annualized one-year interest rate
• D)None of these are correct

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Definitions:

Appetite

The natural desire to satisfy a bodily need, especially for food.

Hypothalamus

A region of the brain that regulates numerous bodily functions, including temperature, thirst, hunger, sleep, mood, and the release of hormones.

Membrane Potential

The voltage difference across a cell's plasma membrane, due to the distribution of ions, important for conduction of impulses in neurons.

Voltage-Gated

Relating to ion channels that open or close in response to changes in membrane potential.