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

---

Definitions:

Tranquilizers

Depressant drugs, such as Valium and Xanax, that reduce anxiety and induce relaxation.

Antianxiety

Pertaining to or describing any substance or action that reduces anxiety.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of certain psychiatric medications.

Metabolic Syndrome

A cluster of conditions—increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol levels—that occur together, increasing the risk of heart disease, stroke, and diabetes.