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The spot rate (zero coupon yield) curve is downward sloping (inverted). Assuming no arbitrage opportunities, the yield on a coupon bond with a maturity of

The spot rate (zero coupon yield) curve is downward sloping (inverted). Assuming no arbitrage opportunities, the yield on a coupon bond with a maturity of 30 years is:

less than the yield on a 30-year zero coupon bond.

greater than the yield on a 30-year zero coupon bond.

equal to the yield on a 30-year zero coupon bond.

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