1. Which of the following statements is not true?
A. Mutual funds trade only at the close at their net asset value
B. Costs for ETFs include trade commissions and an expense ratio
C. ETFs trade at the close at their net asset value only
2. A recent edition of The Wall Street Journal reported interest rates of 6.1 percent, 6.45 percent, 6.75 percent, and 6.85 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory, what are the expected one-year rates for years 4, 5, and 6 (i.e., what are 4f1, 5f1, and 6f1)? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
Expected One-Year
Forward Rates
Year 4 %
Year 5 %
Year 6 %