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When the zero curve is upward sloping, which of the following is true? A. The two-year zero rate is always less than the forward rate
When the zero curve is upward sloping, which of the following is true?
A. | The two-year zero rate is always less than the forward rate for the period between years 2 and 3. | |
B. | None of them. | |
C. | The two-year zero rate is equal to the forward rate for the period between years 2 and 3. | |
D. | The two-year zero rate is always greater than the forward rate for the period between years 2 and 3. |
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