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Basic Question 9 of 9
From par rates we can generate spot rates and implied forward rates. If we discount each cash flow with the appropriate discount rate for each period, which rates will produce the highest value?
B. spot rates
C. implied forward rates
A. par rates
B. spot rates
C. implied forward rates
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Learning Outcome Statements
describe a binomial interest rate tree framework;
CFA® 2025 Level II Curriculum, Volume 4, Module 27.