Which of the Following Equations Is Incorrect

question 33

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)

---

Definitions:

Sexual Partners

Individuals with whom one engages in sexual activity, which may involve varying levels of commitment and emotional connection.

Cultures

The customs, arts, social institutions, and achievements of a particular nation, people, or other social group, shaping their way of life.

Younger

Being at an earlier stage of life, typically associated with less age and experience compared to someone else.

Socially Skilled

Having the ability to interact comfortably and effectively with others in social situations.