Today's Forward Rate $f \left( t _ { 1 } , t _ { 2 } \right)$

question 13

Multiple Choice

Today's forward rate $f \left( t _ { 1 } , t _ { 2 } \right)$ for a period $\left( t _ { 1 } , t _ { 2 } \right)$ in the future ( $t _ { 1 } < t _ { 2 }$ ) is

• A) Unknown until \(t _ { 1 }\) .
• B) Settled when we get to \(t _ { 2 }\) .
• C) Depends on the ytm of coupon bonds of maturities \(t _ { 1 }\) and \(t _ { 2 }\) .
• D) Depends on the ytm of zero-coupon bonds of maturities \(t _ { 1 }\) and \(t _ { 2 }\) .

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Definitions:

Origin

The starting point or fixed reference used in the measurement of coordinates or in the definition of a system.

New Position

A conceptual placement or orientation of a part or component for purposes of design analysis or assembly consideration.

Numerical Control

The automated control of machining tools and other equipment in a manufacturing process via a computer.

Rectangular Coordinates

A coordinate system where each point is defined by an ordered pair of perpendicular lines, one measuring the horizontal (x) and the other the vertical (y) displacement.