Which of the Following Statements Is FALSE

question 86

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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Definitions:

Enemas

A medical process involving the injection of liquid into the rectum, primarily for the purpose of clearing out the bowel.

Exhibitionism

A sexual disorder characterized by an intense urge to expose one's genitals to an unsuspecting stranger for sexual gratification.

Genital Exposure

The deliberate or accidental showing of the genital area to others.

Intercourse

Sexual contact between individuals that involves the penetration of one person's body by another.