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When the Zero Curve Is Upward Sloping, Which Two of the Following

Question 7

Multiple Choice

When the zero curve is upward sloping, which two of the following is true? choose two)


A) The one-year zero rate is always greater than the forward rate for the period between 1 year and 1.5 years.
B) The one-year zero rate is always less than the forward rate for the period between 1 year and 1.5 years.
C) The one-year par yield is always greater than the one-year zero rate.
D) The one-year par yield is always less than the one-year zero rate.

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