Q498
Expected rate that originates at any point in future for a specific security is classified as
A.
forward rate
AnswerB.
backward rate
C.
termed rate
D.
structured rate
Answer: Option A
Solution
Answer: Option A
Solution:
Expected rate that originates at any point in future for a specific security is classified as forward rate. A forward rate is an interest rate applicable to a financial transaction that will take place in the future.