Spot rates are the interest rates that prevail in the market from:
A) the current period until the sale of the security.
B) time zero until the asset's maturity.
C) one period forward to maturity.
D) some unknown future period.

Question

Quizplus · Accepted Answer

Spot rates refer to the current interest rates available in the market for securities to be bought or sold with immediate effect, essentially from the current time (time zero) until the asset's maturity.

Spot Rates Are the Interest Rates That Prevail in the Market