The Main Difference Between the "Short-Form" and "Forward" Methods of Pricing

question 26

Multiple Choice

The main difference between the "short-form" and "forward" methods of pricing a floating-rate note is:

• A)The short-form method gives lower prices than the forward method.
• B)The short-form method gives higher prices than the forward method.
• C)The short-form method does not require knowledge of the entire forward term structure of interest rates.
• D)The short-form method does not use the entire forward term structure of interest rates and hence results in less accurate prices.

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Definitions:

Neuro Checks

Short for neurological checks; these are assessments made to evaluate a person's neurological status, including consciousness, motor function, and sensory abilities.

Hematoma

A localized collection of blood outside the blood vessels, usually in liquid form within the tissue.

DAR Notes

A method of clinical documentation focusing on Data (D), Action (A), and Response (R), used by healthcare professionals to track patient care and outcomes.

Hematoma

A localized collection of blood outside of blood vessels, usually in liquid form within the tissue.