When the spot curve is downward sloping, a later initiation date results in a forward curve that

Question:

When the spot curve is downward sloping, a later initiation date results in a forward
curve that is:

A. Closer to the spot curve.

B. A greater distance above the spot curve.

C. A greater distance below the spot curve.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:46 AM

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When the spot curve is downward sloping, a later initiation date results in a forward curve that

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C is correct This answer follows from the forward rate mode...View the full answer

Fixed Income Analysis

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