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The "Break-Even" Interest Rate for Year N That Equates the Return

Question 38

Multiple Choice

The "break-even" interest rate for year n that equates the return on an n-period zero-coupon bond to that of an n - 1 - period zero-coupon bond rolled over into a one-year bond in year n is defined as


A) the forward rate.
B) the short rate.
C) the yield to maturity.
D) the discount rate.
E) None of the options are correct.

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