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Basic Question 3 of 5

Spot rates are equivalent to the ______ of the current spot rate and the forward rates.

A. average
B. geometric average
C. difference

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

define par and forward rates, and calculate par rates, forward rates from spot rates, spot rates from forward rates, and the price of a bond using forward rates

CFA® 2025 Level I Curriculum, Volume 4, Module 9.