Market evidence shows that forward rates are: A. Unbiased predictors of future spot rates. B. Upwardly biased

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Market evidence shows that forward rates are:

A. Unbiased predictors of future spot rates.

B. Upwardly biased predictors of future spot rates.

C. Downwardly biased predictors of future spot rates.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:46 AM

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Market evidence shows that forward rates are: A. Unbiased predictors of future spot rates. B. Upwardly biased

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B is correct The existence of a liquidity premium ensure...View the full answer

Fixed Income Analysis

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