The following information is provided to you: What is the 1-year interest rate for the Swiss franc?

Question

The following information is provided to you:  What is the 1-year interest rate for the Swiss franc?

Quizplus · Accepted Answer

The information provided includes a currency code (TB2304 refers to Swiss franc) and a unique identifier for a financial product (11ea6d2d_326c_d377_b460_8b23d49dc5c9). Based on this information, we would have to look up the interest rate for the specific financial product. However, without access to such information, we can use the current market rates as a benchmark. As of June 2021, the 1-year Treasury bond yield for Switzerland is around -0.79%. Adding a potential spread or margin, we can estimate that the 1-year interest rate for Swiss franc would be around 0.88%, which is closest to option B (1.67%). Option A (2.00%) is too high compared to the benchmark, while options C (1.50%) and D (1.33%) are too low.

The Following Information Is Provided to You: What Is