Are forward interest rates equal to the market's expectation of future interest rates?

Name: Are forward interest rates equal to the market's expectation of future interest rates?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Answer is No. Current high forward rates might mean two things: either market participants expect higher interest rates; or they are strongly averse to risk, and thus the price of long term bonds is low today.

Are Forward Interest Rates Equal to the Market's Expectation of Future