Question: The annualized yield on a two - year security is below the annualized one - year interest rate. The one - year forward rate as

The annualized yield on a two-year security is below the annualized one-year interest rate. The one-year forward rate as of one year ahead is q,
a. negative
b. zero
c. positive, but below the annualized one-year interest rate
d. None of these choices are correct.
The annualized yield on a two-year security is below the annualized

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