ACI
3I0-012 · Question #34
Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:
The correct answer is B. Implied forward rate. See the full explanation below for the reasoning.
Question
Lending for 3 months and borrowing for 6 months creates a 3x6 forward-forward deposit. The cost of that deposit is called:
Options
- AImplicit nominal rate
- BImplied forward rate
- CFunding rate
- DEffective future rate
How the community answered
(53 responses)- A4% (2)
- B77% (41)
- C6% (3)
- D13% (7)
Community Discussion
No community discussion yet for this question.