The Zero Curve Is Downward Sloping

question 3

Multiple Choice

The zero curve is downward 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:

Inter-rater

A measure of agreement among different people rating or assessing the same thing, ensuring consistency in evaluations across different observers.

Test-retest Reliability

The consistency of a psychological test or assessment over time when given to the same individuals.

Internal Consistency

A measure of the reliability of a psychological test or survey, indicating how well the items on the test measure the same construct or concept.

Alternate Form

A variation of something that exists in a different version or form, often used to maintain interest or provide options.