13.The zero curve is downward sloping. Define X as the 1-year zero rate, Y as the 1.5-year zero rate and Z as the forward rate for the period between 1 and 1.5 years. Which of the following is true ? a. X is less than Y which is less than Z b. X is less than Y which is greater than Z c. X is greater than Y which is greater than Z d. X is greater than Y which is less than Z
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Give typing answer with explanation and conclusion
13.The zero curve is downward sloping.
Define X as the 1-year zero rate, Y as the 1.5-year zero rate and Z as the forward rate for the period between 1 and 1.5 years.
Which of the following is true ?
a.
X is less than Y which is less than Z
b.
X is less than Y which is greater than Z
c.
X is greater than Y which is greater than Z
d.
X is greater than Y which is less than Z
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