If the ytm curve is upward sloping then which of the following orderings of yield, zero-coupon rates (zcr) and forward rates (fwr) is most valid?
A) ytm

Question

If the ytm curve is upward sloping then which of the following orderings of yield, zero-coupon rates (zcr) and forward rates (fwr) is most valid? 
A) ytm < zcr < fwr
B) ytm < fwr < zcr
C) zcr < fwr < ytm
D) fwr < zcr < ytm

Quizplus · Accepted Answer

In an upward sloping yield curve, typically, the yield to maturity (YTM) is lower than the zero-coupon rates (ZCR), which in turn are lower than the forward rates (FWR). This reflects the expectation of rising interest rates in the future.

If the Ytm Curve Is Upward Sloping Then Which of the Following