Forward rates ____________ future short rates because ____________.
A. are equal to; they are both extracted from yields to maturity
B. are equal to; they are perfect forecasts
C. differ from; they are imperfect forecasts
D. differ from; forward rates are estimated from dealer quotes while future short rates are extracted from yields to maturity
E. are equal to; although they are estimated from different sources, they both are used by traders to make purchase decisions
C. differ from; they are imperfect forecasts
Forward rates are the estimates of future short rates extracted from yields to maturity but they are not perfect forecasts because the future cannot be predicted with certainty; therefore they will usually differ.
You might also like to view...
Which sentence is expressed correctly?
A) I will edit the proposal; I promise, by Friday. B) I will edit the proposal I promise by Friday. C) I will edit the proposal?I promise?by Friday.
Which form of market efficiency that states that it does no good to scrutinize such publicly available information as a company's financial statements to seek abnormal returns, because market prices will adjust to any good news or bad news contained in such reports as soon as they are made public?
A. Economic efficiency B. Strong-form efficiency C. Semistrong-form efficiency D. Weak-form efficiency E. Real-time efficiency
One of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of shareholders.
Answer the following statement true (T) or false (F)
At the strategic decision-making level, employees develop, control, and maintain core business activities.
Answer the following statement true (T) or false (F)