Which of the Following Equations Is INCORRECT

question 10

Multiple Choice

Which of the following equations is INCORRECT?

• A)Expected future spot interest rate = forward interest rate + risk premium
• B)(1 + f₁)× (1 + f₂)× (1 + f₃)× ...× (1 + f_n)= (1 + YTM_n)ⁿ
• C)f_n = - 1
• D)(1 + YTM_n)ⁿ = (1 + YTM_{n - 1})^{n - 1}(1 + f_n)

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Definitions:

Property

Legal rights to own, use, and dispose of land, buildings, goods, intellectual creations, and other items.

Punitive Damages

Financial payment provided to a harmed individual that exceeds the amount needed for loss recovery and aims to penalize the responsible party.

Homeowner's Insurance

A form of property insurance that covers losses and damages to an individual's house and assets in the home.

Good Faith

Acting with honesty and sincerity, without intent to deceive or unfair advantage, especially in contractual or negotiation contexts.