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If discount factors are decreasing as a function of maturity, which of the following is definitely true? A. zero rates are decreasing as a function
If discount factors are decreasing as a function of maturity, which of the following is definitely true?
A. zero rates are decreasing as a function of maturity
B. the no-arbitrage condition is violated
C. None of the other answers are correct.
D. zero rates are increasing as a function of maturity
E. forward rates are positive
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