Which of Following Describes Forward Rates

question 19

Multiple Choice

Which of following describes forward rates?

• A) Interest rates implied by current zero rates for future periods of time
• B) Interest rate earned on an investment that starts today and last for n-years in the future without coupons
• C) The coupon rate that causes a bond price to equal its par (or principal) value
• D) A single discount rate that gives the value of a bond equal to its market price when applied to all cash flows

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Definitions:

External Locus

A belief that outcomes of events are determined by forces outside personal control.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and commitment.

Introverted

Describing a person predominantly concerned with their own thoughts and feelings rather than external things.

Conscientious Employees

Workers who are diligent, responsible, and committed to doing their work thoroughly and well.