Question: Long term interest rate is _____ higher than short term interest rate. A. always B. normally C. rarely D. never Eurodollar can be used for

Long term interest rate is _____ higher than short term interest rate.

  • A. always
  • B. normally
  • C. rarely
  • D. never

Eurodollar can be used for hedging the risk of fluctuation in _____.

  • A. A. short term U.S. interest rate
  • B. B. long term U.S. interest rate
  • C. C. short term Euro interest rate
  • D. D. Long term Euro interest rate

Assume today is Jan 1, 2021. The symbol 2f3 today represents today's forward rate or expected yield for a ___ year bond that begins on Jan 1, _______.

  • A. 3; 2023
  • B. 2; 2023
  • C. 2; 2024
  • D. 3; 2023
  • E. 3; 2024

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