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Corporate Finance · Quiz 1 · 26 Oct 2025 · September 2025 term

Question 21: On investigating the Indian yield curve, you find that a…

Question 21

+4 marksOne correct option

On investigating the Indian yield curve, you find that annualized rate on 1-year bond (expiring in September 2026) is 4% and the annualized rate on 2-year bond (expiring in September 2027) is 4.5%. What would be the 1-year interest rate from September 2026 to September 2027?

  1. A

    4.28%

  2. B

    4.50%

  3. C

    4.72%

  4. D

    5.00%

Show answer

Correct answer

  • D

    5.00%

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Question 21 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 4 marks.

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