Which of these is the expected or "implied" rate on a short-term security that will originate at some point in the future?

Question

Quizplus · Accepted Answer

The forward rate is the expected or "implied" rate on a short-term security that will originate at some point in the future. It is calculated based on the current spot rates and can be used for hedging or investment decisions. Current yield, yield to maturity, and spot rate are different concepts and do not represent the expected future rate.

Which of These Is the Expected or "Implied" Rate on a Short-Term