If the Forward Rate Curve Is Downward Sloping,then

question 10

Multiple Choice

If the forward rate curve is downward sloping,then

• A)The zero-coupon curve will lie above the yield curve.
• B)The zero-coupon curve will lie below the yield curve.
• C)The zero-coupon curve will lie above the yield curve in the near maturities and then lie below the yield curve for later maturities.
• D)Not enough information to be able to answer the question.

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