Which One of the Following Is Defined as a Forward

question 38

Multiple Choice

Which one of the following is defined as a forward rate?

• A)rate agreed upon today for a long-term loan
• B)interest rate quoted today which will apply to all loans made this week
• C)interest rate on a loan made today that will vary as the market rate varies
• D)interest rate adjusted for the anticipated rate of inflation
• E)expected future interest rate implied by current interest rates

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Definitions:

Return On Total Assets

A financial metric that measures a company's earnings before interest and taxes (EBIT) relative to its total asset value.

Net Profit Margin Percentage

A financial metric that shows what percentage of a company's revenues is left over after all expenses have been deducted, indicating profitability.

Return On Equity

A financial ratio indicating the profitability of a firm in relation to shareholders' equity, showing how effectively a company uses investors' funds to generate profit.

Year 2

Typically refers to the second year of a given time frame, period of analysis, or the second year of operation or study.