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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