Forward Interest Rates Tend

question 66

Multiple Choice

Forward interest rates tend

• A) to accurately predict future spot rates because of the law of one price.
• B) not to be good predictors of future spot rates.
• C) to be biased downward as predictors of future spot rates when the yield curve is upward sloping.
• D) to be biased upward as predictors of future spot rates when the yield curve is downward sloping.

---

Definitions:

Real Property

Land and anything permanently affixed to it, such as buildings or trees, considered as a legal entity.

Converted

Changed or transformed in form, character, or function.

Estray Statutes

Laws governing the finding and reporting of lost or stray livestock or domestic animals.

Title

A legal term referring to the legal right to own, use, or dispose of property.