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Suppose that the yield curve is upward sloping. Which of the following statements is TRUE?
A
The forward rate yield curve is above the zero-coupon yield curve, which is above the coupon-bearing bond yield curve.
B
The forward rate yield curve is above the coupon-bearing bond yield curve, which is above the zero-coupon yield curve.
C
The coupon-bearing bond yield curve is above the zero-coupon yield curve, which is above the forward rate yield curve.
D
The coupon-bearing bond yield curve is above the forward rate yield curve, which is above the zero-coupon yield curve.
