CFA Level I sample question

CFA Level I No-Arbitrage Forward Rates question

Quantitative Methods / No-Arbitrage Forward Rates

No-login practice

No-Arbitrage Forward Rates sample question

Choose an answer before revealing the explanation, key takeaway, and answer-choice review.

Question 1 of 1Score 0/1
Moderate

Quantitative Methods

No-Arbitrage Forward Rates

The one-year spot rate is 4.0% and the two-year spot rate is 5.2%, both annual effective rates. The one-year forward rate beginning one year from today is closest to:

Report an issue

Question of the Week

Get one CFA Level I question by email

Receive a weekly practice question with answer-choice explanations and a short takeaway.