When the Zero Curve Is Upward Sloping, Which Two of the Following

question 6

Multiple Choice

When the zero curve is upward sloping, which two of the following is true? choose two)

• A) The one-year zero rate is always greater than the forward rate for the period between 1 year and 1.5 years.
• B) The one-year zero rate is always less than the forward rate for the period between 1 year and 1.5 years.
• C) The one-year par yield is always greater than the one-year zero rate.
• D) The one-year par yield is always less than the one-year zero rate.

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Definitions:

Supernatural Forces

Entities, powers, or phenomena that are beyond the natural world and cannot be explained by natural laws, often associated with religious or mystical traditions.

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Regions located outside towns and cities, often characterized by farming, low population density, and possibly larger areas of natural landscape.

Large Institutions

Major organizations or establishments, especially those that are influential in society, such as universities, corporations, or hospitals.

Eclectic Approach

A method in psychotherapy that integrates techniques and theories from various psychological schools of thought in order to best address a client's needs.