What Is Forward Rate and How It Works in Simple Terms
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The term structure of interest rates is upward sloping. Put the following in order of magnitude:a. The five-year zero rateb. The yield on a five-year coupon-bearing bondc. The forward rate corresponding to the period between 4.75 and 5 years in the futureWhat is the answer to this question when the term structure of interest rates is downward sloping?
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