Given a Normal Yield Curve, the Swap Rate Will Be

question 43

Multiple Choice

Given a normal yield curve, the swap rate will be:

• A)just above the average of the forward rates
• B)above the BBSW expected in the first period
• C)equal to the BBSW expected in the first period
• D)below the BBSW expected in the first period.
• E)More than one of these is correct.

---

Definitions:

385.83 Ω

A specific value of electrical resistance, measured in ohms (Ω).

680 Ω

A unit of electrical resistance measuring 680 ohms.

Parallel Circuits

Circuits that contain more than one path for current flow.

Current Dividers

A circuit that is constructed to produce a specific amount of current flow through a branch.