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Basic Question 5 of 9

In the binomial interest rate tree, the mean of two possible rates at each node is:

A. The expected spot rate
B. The implied forward rate
C. The actual spot rate

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe a binomial interest rate tree framework;

CFA® 2025 Level II Curriculum, Volume 4, Module 27.