Chartered Financial Analyst Level 2
Get started today
Ultimate access to all questions.
18 For an investor expecting future spot rates to be below the current forward rates, the expected return of a bond over a 1-year period will be:
18 For an investor expecting future spot rates to be below the current forward rates, the expected return of a bond over a 1-year period will be:
Exam-Like
A
less than the 1-year risk-free rate.
B
equal to the 1-year risk-free rate.
C
greater than the 1-year risk-free rate.
Comments
Loading comments...