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Given the following bonds and forward ra...

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题目

Given the following bonds and forward rates:「huixue_img/importSubject/1564170384545288192.png」
1-year forward rate one year from today = 9.56%
1-year forward rate two years from today = 10.77%
2-year forward rate one year from today = 11.32%

Which of the following statements about the forward rates, based on the bond prices, is true?

选项

A.The 1-year forward rate one year from today is too low.

B.The 2-year forward rate one year from today is too high.

C.The 1-year forward rate two years from today is too low.

D.The forward rates and bond prices provide no opportunities for arbitrage.

答案

C

解析

The solution is as follows:「huixue_img/importSubject/1564170384624979968.jpeg」