14. 6 Marks If the par bond yield-curve is upward sloping (higher YTMs with longer maturities), which of the following statements is correct? A. The zero-coupon curve is upward-sloping B. The zero-coupon curve can be flat or inverted C. This implies higher forward rates for each subsequent future accrual period D. Answers A and C are both correct E. Answers B and C are both correct 15. 6 marks It is September of 2023. You think that beginning in late May of 2024, SOFR will move considerably lower than the forward short term rates that are implied by the current market. To earn a profit from your outlook, which of the following transactions will best accomplish this? A. Sell March 2023 SOFR futures B. Buy March 2023 SOFR futures C. Buy June 2023 SOFR futures D. Sell June 2023 SOFR futures 16. 5 Marks Regarding the modified duration, which of the following is a correct statement? A. Convexity changes the bond's modified duration as the bond's YTM changes B. An increase in the general level of interest rates reduces modified duration C. As contractual maturity gets nearer, modified duration gets smaller D. A and C are correct E. All of A,B, and C are correct