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4.7. The term structure of interest rates is upward-sloping. Put the following in order of magnitude: (a) The 5-year zero rate (b) The yield on

4.7. The term structure of interest rates is upward-sloping. Put the following in order of magnitude:

(a) The 5-year zero rate

(b) The yield on a 5-year coupon-bearing bond

(c) The forward rate corresponding to the period between 4.75 and 5 years in the future.

What is the answer when the term structure of interest rates is downward-sloping?

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