Solved

Which of the Following Equations Is Incorrect

Question 102

Multiple Choice

Which of the following equations is incorrect?


A) Expected future spot interest rate = forward interest rate + risk premium
B) (1 + f1) × (1 + f2) × (1 + f3) × ... × (1 + fn) = (1 + YTMn) n
C) fn = Which of the following equations is incorrect? A) Expected future spot interest rate = forward interest rate + risk premium B) (1 + f<sub>1</sub>) × (1 + f<sub>2</sub>) × (1 + f<sub>3</sub>) × ... × (1 + f<sub>n</sub>) = (1 + YTM<sub>n</sub>) <sup>n</sup> C) f<sub>n</sub> = - 1 D) (1 + YTM<sub>n</sub>) <sup>n</sup> = (1 + YTM<sub>n </sub><sub>- 1</sub>) <sup>n </sup><sup>- 1</sup>(1 + f<sub>n</sub>) - 1
D) (1 + YTMn) n = (1 + YTMn - 1) n - 1(1 + fn)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q83: Use the information for the question(s)below.
Luther Industries

Q94: Forward interest rates tend
A) to accurately predict

Q95: Which of the following statements is correct?
A)

Q97: Use the table for the question(s)below.
Consider the

Q98: Which of the following statements is false?
A)

Q99: Which of the following statements is false?
A)

Q101: Which of the following statements is false?
A)

Q103: Which of the following statements is false?
A)

Q104: Which of the following statements is false?
A)

Q107: Use the table for the question(s)below.
Consider the

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents