Select all the TRUE statements about rates. More than one statement or no statements may be true.

a.

Quoted rates numerical value will be higher than an equivalent effective rate value so long as the effective rate is positive

b.

The central bank overnight rate is the rate at which individual citizens can borrow from the central bank overnight

c.

Quoted rates are most often used in sophisticated models of derivative pricing

d.

Gross rates of return have a minimum value of 0 if liability is limited

e.

A spread is the difference between two different rates of the same time horizon

f.

An net rate of return of 5% would be equivalent to 1.05 for a gross rate of return

Select all the TRUE statements about rates. More than one statement or no statements may be true. a. Quoted rates numerical value will be higher than an equivalent effective rate value so long as the effective rate is positive b. The central bank overnight rate is the rate at which individual citizens can borrow from the central bank overnight c. Quoted rates are most often used in sophisticated models of derivative pricing d. Gross rates of return have a minimum value of 0 if liability is limited e. A spread is the difference between two different rates of the same time horizon f. An net rate of return of 5% would be equivalent to 1.05 for a gross rate of return