Th e rate, interpreted to be the incremental return for extending the time-to-maturity of an investment for

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Th e rate, interpreted to be the incremental return for extending the time-to-maturity of an investment for an additional time period, is the:

A . add-on rate.

B . forward rate.

C . yield-to-maturity.

Th e following information relates to Questions 38 and 39 Time Period Forward Rate

“0y1y” 0.80%

“1y1y” 1.12%

“2y1y” 3.94%

“3y1y” 3.28%

“4y1y” 3.14%

All rates are annual rates stated for a periodicity of one (eff ective annual rates).

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Fixed Income Analysis

ISBN: 9788126563128

3rd Edition

Authors: Barbara S. Petitt, Jerald E. Pinto, Wendy L. Pirie, Bob Kopprasch

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Question Posted: Oct 23, 2024 08:05 AM

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Th e rate, interpreted to be the incremental return for extending the time-to-maturity of an investment for

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Fixed Income Analysis

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