Which of the Following Is True with Respect to Forward

question 4

Multiple Choice

Which of the following is true with respect to forward rates?

• A) A forward rate is another name for a zero-coupon bond's yield.
• B) A forward rate is equal to the expected return on a zero-coupon bond.
• C) A forward rate is the rate one can contract today for riskless borrowing or lending at a future date.
• D) Forward rates are always increasing in time to maturity.
• E) Forward rates are always decreasing in time to maturity.

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