Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) The forward rate for year 1 is the rate on an investment that starts today and is repaid in one year; it is equivalent to an investment in a one-year zero-coupon bond.
• B) The forward rate is only a good predictor of spot interest rates in the future when investors are risk adverse.
• C) We can use the law of one price to calculate the forward rate from the zero-coupon yield curve.
• D) An interest rate forward contract is a contract today that fixes the interest rate for a loan or investment in the future.

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The act of being among the first to explore, discover, or use something new.

Competitive

Pertaining to a state or condition where businesses or individuals vie for the same customers or market share, often by offering superior values, quality, or innovation.

Product Advertisements

Marketing messages specifically designed to inform, persuade, or remind consumers about a particular product or brand.

Competitive

Having the quality or attributes necessary to challenge other entities in the same field or market.