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The term structure of interest rate is upward sloping. Rank the following rates according to their size. You have to explain why. Assume countinous compounding.

The term structure of interest rate is upward sloping. Rank the following rates according to their size. You have to explain why.

Assume countinous compounding.

a. The 1 year zero rate

b. The 2 year zero rate

c. The yield on a 2 year coupon-bearing bond (Assume that coupons are paid annually)

d. The following rate corresponding to the period between 1 and 2 years in the future

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