A. forward rate
B. backward rate
C. termed rate
D. structured rate
✅ The correct answer is option A.
Expected rate that originates at any point in future for a specific security is classified as forward rate. A forward rate is an interest rate applicable to a financial transaction that will take place in the future.
Expected rate that originates at any point in future for a specific security is classified as forward rate. A forward rate is an interest rate applicable to a financial transaction that will take place in the future.