Question: When the zero curve is upward sloping, the zero rate for a particular maturity is greater than the par yield for that maturity. When the

“When the zero curve is upward sloping, the zero rate for a particular is greater than the par yield for that When the zero curve is downward sloping the reverse is true.” Explain why this is so.

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The par yield is the yield on a couponbearing bond The zero rate is the yield on a zerocoupon bond ... View full answer

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