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.

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