The expected rate that originates at any point in future for a specific security is classified as __________?
Correct answer: A. forward rate
- A. forward rate
- B. backward rate
- C. termed rate
- D. structured rate
Explanation
A forward rate is an interest rate agreed or expected for a period that begins at a future date. The term does not mean a backward or structured rate.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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