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:

Menarche

The first occurrence of menstruation in a female, marking the onset of reproductive capability.

Puberty

The period of sexual maturation, during which a person becomes capable of reproducing.

Primary Sex Characteristics

The body structures (ovaries, testes, and external genitalia) that make sexual reproduction possible.

Secondary Sex Characteristics

Nonreproductive sexual characteristics, such as female breasts and hips, male voice quality, and body hair.