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:

Belief and Doubt

The state of accepting something as true versus the feeling of uncertainty or lack of conviction.

John Rawls

A prominent American philosopher known for his work in political philosophy, especially his theory of justice as fairness.

Important Aspirations

Goals or ambitions that hold significant value to an individual or group, often guiding their actions and decisions.

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A state of well-being and contentment, often characterized by positive emotions ranging from contentment to intense joy.