Suppose the Current 6 Year Rate Is 9% and the Current

question 45

Multiple Choice

Suppose the current 6 year rate is 9% and the current 5 year rate is 7%.What is the one year forward rate for five years?

• A) 19.57%
• B) 18.62%
• C) 15.80%
• D) 14.65%
• E) 12.67%

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Definitions:

Ad-

A prefix meaning toward or in the direction of, often used in medical terms.

Prefix

An affix placed before the stem of a word to alter its meaning or create a new word, for example, 'pre-' in 'preview'.

Prefix

An affix placed before a word to modify its meaning.

Abd

An abbreviation frequently used in healthcare and medical imaging to refer to the abdomen or abdominal area.