Which of the following statements is FALSE?

a. The real rate must be less than the nominal rate given a positive rate of inflation.

b.The federal funds rate is the average interest rate at which banks report that they would borrow from each other.

c. All other things being equal, the price and yield on a bond are inversely related. We can use the law of one price to calculate the forward rate from the zero-coupon yield curve.

d.In a forward contract, the terms are set today, but the actual transaction occurs on some pre-specified future date.