The Zero Curve Is Upward Sloping

question 13

Multiple Choice

The zero curve is upward sloping.Define X as the 1-year par yield,Y as the 1-year zero rate and Z as the forward rate for the period between 1 and 1.5 year.Which of the following is true?

• A) X is less than Y which is less than Z
• B) Y is less than X which is less than Z
• C) X is less than Z which is less than Y
• D) Z is less than Y which is less than X

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Definitions:

Skewed Distribution

A distribution of data where most values are on one side of the mean, resulting in a curve that is not symmetrical.

Bar Graph

A graphical representation that uses bars of varying lengths to depict quantities or values of different categories.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values typically differ from the mean.

Central Tendency

Describes the center or typical value of a data set, commonly measured by the mean, median, and mode.