The interest rates at each node on the binomial interest rate tree are actually

	A.	implied forward rates.
	B.	zero-coupon bond rates.
	C.	market-determined yields to maturity.

The binomial interest rate tree framework makes it possible to account for the effect of ______on bond value.

	A.	zero-coupon rates.
	B.	the yield curve.
	C.	interest rate volatility.

A positively sloping yield curve will produce zero coupon bond rates that with increasing maturity.

	A.	increase.
	B.	decrease.
	C.	remain the same.