When the yield curve is upward sloping, the fixed rate on a multiyear swap must be higher

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"When the yield curve is upward sloping, the fixed rate on a multiyear swap must be higher than the current level of LIBOR. With a downward-sloping yield curve, the opposite will occur." Explain what is meant by this statement, and why it must be true.

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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