Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 3 of 13
Given the spot rates r(1) = 5%, r(2) = 5.5%, and r(3) = 6%, we can calculate that f(2,1) is 7%. Without calculation we can determine that f(1,1) is
B. between 6% and 7%.
C. greater than the average of 6% and 7%, which is 6.5%.
A. between 5.5% and 7%.
B. between 6% and 7%.
C. greater than the average of 6% and 7%, which is 6.5%.
User Contributed Comments 0
You need to log in first to add your comment.
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
describe relationships among spot rates, forward rates, yield to maturity, expected and realized returns on bonds, and the shape of the yield curve;
describe how zero-coupon rates (spot rates) may be obtained from the par curve by bootstrapping;
CFA® 2025 Level II Curriculum, Volume 4, Module 26.