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Basic Question 1 of 9

What is the discount rate in the binomial interest rate tree?

A. spot rate
B. forward rate
C. yield to maturity

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe a binomial interest rate tree framework;

CFA® 2025 Level II Curriculum, Volume 4, Module 27.