- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 26. The Term Structure and Interest Rate Dynamics
- Subject 1. The Forward Rate Model
CFA Practice Question
If yields extend to 30 years on today's yield curve, then 5 years hence, the longest maturity forward rate would be:
B. f(5,30)
C. f(5,35)
A. f(5,25)
B. f(5,30)
C. f(5,35)
Correct Answer: A
Forward rates do not extend any further than the furthest maturity on today's yield curve.
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